Good points. I always try to think of the engine cooling as the "engine closed coolant loop" system. Rather ponderous term, but differentiates it from the potable water system we have for drinking/washing.
Our former M25XP had a pair of hoses that took off from the top area by the thermostat housing and were routed to the hot water tank heating coil connections. The newer Betamarine has a similar hose hookup.
For over a decade we have had the "Heatercraft" cabin fan-driven heater unit plumbed in series with that hose run. i.e. from engine compartment to hot water tank and from there to the heater, and then returning to the engine. I have insulated some of these hoses, also where I could get at them easily.
This does add a few minutes to fully warm up the engine from a cold start. The good news is that these small diesels have a LOT of waste heat to give up. Running at approximately 2500 rpm for cruising speed, we can run the heater fan on any speed and never see a fall-off in engine temp. Of course we never run the blower fan above the lowest speed or we'd get darn-near driven out of the cabin by the heat...
