I believe that UL has issued a statement that they only list small - as in 5 gallons or less- water heaters for use with a cord & plug. So, as attractive as a cord and plug might be as a disconnecting means, the use of the option is rather limited.
I must also point out that the UL statement seemed to assume an electric heating element. For a gas-fired heater, that uses a cord & plug solely for control / igniter power, I believe the use of a cord and plug is allowed.
UL's opinion aside, I have yet to see a 'field' supplied cord & plug properly used with a water heater. When I find such, invariably the wire gauge is way too small, there are issues with the cable suport, the strain relief is inadequate, and the wrong plug is used.