I've been reading up about water heating in the library, in particular, Kells and Faber Heating and Air Conditioning in Buildings.
Things seem a little clearer. Vented systems seem to be those in which cold water is fed in from a cold water tank in the loft, while unvented systems have cold water pumped in from the mains supply. Direct systems are those in which the water is heated directly by the heating element, like a kettle, and are regarded as obsolete because they're vulnerable to limescale build up in hard water areas. Indirect systems are those in which the heating system heats water in an enclosed in a loop of copper pipe which coils through your water tank where it loses its heat to the water that comes out of your tap.
I think it also explained some strange things about my old immersion heater, such as why the cold water pipe seemed to enter at the top of the tank while the hot water seemed to come out the middle, and what that extra pipe in which nothing flowed was doing. I am betting that there is a cistern at the top of the tank in which cold water is fed. The cold water feeds down the side of the tank and enters the hot water tank at the bottom. The other pipe allows air to enter the cold water cistern to equalise the pressure. I guess this also explains why there is no insulation on the top or the bottom of the tank.
I seem to remember when I looked at getting gas water heating before that there was a requirement to put in a flue gas vent. I doubt this is a massive problem in my flat because it's solid wall, but wouldn't it be a problem in buildings with cavity walls? Couldn't it also lead to air-tightness and cold bridging issues (not that that's a consideration in my flat)? Wouldn't installing a vent also put up the expense?
A smallish, dual immersion heater water cylinder with lots of insulation seems like a cheaper and easier option, but I still suspect that a lot of the time I would be heating up water that cooled down again before I used it.
How do people usually control their immersions heaters? Do they leave them on all the time? My old water cylinder just had one immersion heater. I put a timer on the electricity plug to switch it one for an hour before 7am to use economy 7 electricity, then for an hour at about 7pm and 30 mins about 11pm. The dual immersion heater cylinders seems to imply the electricity should be left on all the time.
I picked up a brochure in a local renewable/economical heating systems shop, but they said they only supply commercial buildings - wtf? It's not what their brochures imply. However, like nearly every brochure I've seen, their domestic heating systems always seem to target nuclear families in modern, detached houses, in which a space heating is also assumed.