6 gallons is the common size for most RVs, works fine for showers, dishwashing, etc even full time 2 people. Lived in one for 6 years while building our house, never a problem. If you mix 6 gallons with some cold you get more than 6, not less. On the trawler, I have a 20 liter heater that also works fine for two. If you have a 4 gal/min shower head and like 20 minute showers, you are going to have more trouble with the watermaker than the heater.Simi, what are you going to do with only 6 gallons of hot water??? By the time it gets mixed down with incoming cold water you're likely to obtain about 3-4 gallons of hot. 2 people living full time, showering, washing dishes, etc.
I had a sailboat with the Paloma. It worked fine, you did have to open the tap enough to get flow for it to kick on. It had a standing pilot, which was a bit of a concern. There was another brand which was responsible for the deaths, not Paloma, AFAIK.Paloma propane water heaters were common on Canadian cruising sailboats in the early 1980s. But there were several deaths attributed to CO poisoning from this type of heater, and they disappeared from marine use after that.
All that said, a hydronic system like the ITR provides essentially unlimited hot water.