I think it's a good idea. May perhaps work best as a second bell also. Similarly I think an external copper coil, located around the exhaust duct , or on the lower outside of the first bell, would work also.
I rely on propane for my
hot water, lay year I used propane for heat and
hot water, but this year I've been using my match box
rocket mass heater so I'm not spending money on propane as much. I have free dead hard
wood and 10 acres to collect wood from, if I could make hot water and heat BOTH from wood, I would definitely convert away from relying on purchased fuels. A hot water tank like my 40 gallon unit could serve as a storage tank during winter and a heater in the summer. And could also be retained as propane fired, in case of emergency or summer or simply hotter water.
I've also recently discovered drain heat exchangers, which wrap around your
shower drain, and instead of bringing cold water into the tank, it coils around the warm drain first slightly increasing the temperature of the water tank input. I always thought pumping fresh cold water into a huge hot water tank was silly, why not coil the cold well water around a heat source, or chimney, or drain, and then run that warmer fresh water into the hot water storage tank. 90% of hot water tanks I've ever seen have cold water inputs and burn a ton of
energy trying to warm that cold fresh input water, something I never could understand when the average chimney sends 200-300 degree waste outside. Even a fresh air heat exchanger could warm the water with the warm air that leaks out of your house while fresh air comes in via displacement. There is no reason to pump cold water into a hot water tank and burn energy trying to keep it constantly warm when it could be warm or hot water being introduced into the tank reducing energy consumption by a substantial amount.
The dangers people refer to are boom squish, basically water boiling in the line causing vapour flash explosions, which could easily be avoided by using a cooler spot for the copper cool, as you mentioned. Placing the coil externally can also help tremendously in Avoiding boiling and excess heat.