tweake:
define "well insulated". i've seen claims that its "meets spec..." but they all look like very thin amount of insulation. remember that an indoor hwc also has the insulation of the house around it. also the pipes should all be insulated, including the cold as you don't want that to freeze.
the other thing is has anyone actually tested it? i bet no home owner has ever tested it. people assume its well insulated.
When they are inside, the cupboard they are in is no longer useful as an airing cupboard and stays at ambiemt if no water is used so therefore the pipes dont carry any hot water.