That partially remove Styrofoam seems to be busted off during a electric element replacement. The black cover is where the element is located and has exposed wires on element so hence the protective cover.
Your two problems will be overheating area where WH is located and the fact that very little heat will radiate out and provide much if any heat. The heat that radiates off tank will very quickly cool...just not enough heat source.
Might work as a 'seat warmer' for the wife.......but as a room heater :H
