Thanks for all the responses. I understand it better now. I should have figured it would be able to run empty as someone said, thats how it rolled out of the factory.
As far as draining every use, just a habit I guess. I was always worried about stale water. I may have to get past it now, as the HW drain is up above my head now and between the motoraid and the use with electric/gas, I don't think there will be a time its not hot! :)
I noticed the fridge has a water tank for cooled water, so maybe stale water isn't as big a deal as I make it out to be.