80% efficiency is not bad for a furnace. I would love to see them get to 85-90% like they have on stick and brick furnaces, but even then you still get heat, vapor and CO emissions that must be sent outside. As for placement, I have found that at least in recent years the builders seem to take placement of the furnace and water heater into a little more consideration then they have in the past. But there are only so many places to mount them without removing from the living space.