While some people use WH for domestic heating, I don't like the idea. Unless you have a heat exchanger, you've got a long pipe of potentially stagnent water sitting in the pipes, especially in the summer when you bypass the heating circuit. That, and the fact that WH aren't really designed for continuous operation make it a poor choice for household heating.
I've heard both good and bad about the latest version of the Munchkin and the Munchpak. I put in a Buderous this winter and like it. Weil-Mclain and many others make modulating HE boilers, but none, at least in the small output category, yet qualify for the federal tax credits because they set the threshold quite high. I did qualify from the utility company for $1100 rebate for the boiler and indirect WH I installed, though, which helped. You may want to check your local utility company and see if they are offering any, and what brands and types qualify...this could save you some money.