"A direct-vent natural gas-fired water heater is probably the simplest, most reliable appliance you could own. It requires no electricity." I won't address the legality issue, but: First, I'm not sure about the no electricity; if the heater has a pilot light, then I suppose no, but otherwise it requires electricity at least for the igniter.

Second, you're missing another reason for getting a heat pump water heater. We just last week replaced our 13 year old (and therefore on its end of life) gas heater with a heat pump water heater. It requires no gas :). One reason for doing that is that using electricity to run a small heat pump is far cheaper where we live than gas. (We have solar panels, which makes it still cheaper--in fact, free.)

The only things remaining in our house that use gas are the stove and a gas log fireplace. We've used the latter twice during the 13 years we've lived in the house. If we replace the stove (which we'll need to do some day, it's almost 25 years old) with an electric one, then I'd be easily persuaded to turn off the gas fireplace, and end the delivery charge on gas.

As an electric appliance owner, I'll take that chance.