After researching far and wide, I found several more tidbits of information.
1) The relief valve is usually fitted with a something you can attach a hose to so you can direct that extra water somewhere. Some folks have noticed that there is a puddle of water under that and decided to be helpful and cap that. The mythbusters made a little house, did this very thing, and then shorted out the termostat. The result was one of the biggest explosions they ever encountered on their show. At least, that's what they thought up until the moment that the water heater body landed. Then they changed their evaluation from "explosion" to "massive rocket launch".
http://www.youtube.com/watch?v=pu3FwgIHsQA 2) There is a big difference between steam and water vapor. A hot shower has lots of water vapor, but no steam.
3) Keep those thermostats set high! Some people lower the temp on their water heater to save energy. And while that does work, you might be creating an excellent breeding ground for all sorts of icky things. Apparently, commercial buildings have a special mixing chamber that mixes cold water with the hot water as it leaves the hot water tank so the temp is never above 110. Just turning the temp down to 100 isn't gonna cut it.