What he is doing is fine, disregarding heating and plumbing codes. It technically wouldn't pass code, so doing this is wrong. I have to say that. Using a water heater for space heating is violating its osha approval. But it is a grey area in the code book, so it is hard to nail down. But from a mechanical standpoint using a taco 006 or another bronze circulator it will work fine. The system would then need an external check valve installed because the circulator wouldn't have one internally. You also probably wouldn't need as much pex tubing and could go with a smaller size because it would have excellent transfer properties. I used 250' of 3/4 pex coiled in a pool. When the pool water was 75 I was getting a 100 degree drop from supply to return. This was being fed by a 150,000 btu/h boiler and was running nonstop. Thats like a 44,000 watt heater.