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David, here's the settings for the water heater:
Since I managed to bring the service water natural gas load down a bit by changing the fractional use schedules, the water connections now correspond to two bathrooms w/ four 1-gpm sinks each and a cafe with one 2.2-gpm sink. I also brought loads down again by creating new temperature schedules & applying them to the definitions for my 'bathroom' and 'cafe' fixtures (e.g assume constant 40C hand-washing temperature). So the results might be realistic enough now...but if you see any huge, obvious problems with the water heater loop; feel free to point them out.