The exhaust(I)
should come from the bottom of the duct (H), thus only exhausting the coolest gasses.
Assuming (K) is bricks, I would want a minimal amount of such mass,
enough to support the copper vessel(G).
It will suck up heat that could be going into the water.
I would replace masonry with insulation where I could,especially on the top side of the heater.
Speaking of G, a copper tank seems awfully nice to cover up in this.
I would use it elsewhere, like to broil wort,or
sell it to pay for other materials.
Derelict gas or electric water
heaters are usually available free or cheap.
Your rocket looks like a J, but the fuel
feed is capped and the air is coming in seprate from the fuel.
This is not a known design to me.
Since you have no inlet for water, I would guess you are hauling it by hand.
The fill cap seems hard to get to.Would you have to climb a ladder with a
bucket of water?
Moving the tank and lower and exhausting the riser (E) into the side of the ducting(H),would make the whole thing lower.
One more thing, the tap would ideally have a intake that floated at the surface of the tank water in order to get the hottest water in the tank,but I don't know of good way to do that.