Yes, they're stupid. They cost five times as much as a gas water heater, and three times a conventional electric one. They only work under ideal conditions, and conditions are never ideal, so they are wildly inefficient.
Albany's reckless energy policies are incentivizing heat pumps as the technology of our all electric future. Our mechanical code requires resistance heat backup for every heat pump installation because they don't work in our severe climate.
Total cost of ownership, I'll stick with the gas heater. Even factoring for a six year service life, it's more hot water, faster, for a fraction of the price.