140 degree engine water temp will certainly heat a hot water heater to close to 140 if you run the engine long enough. A 160f or 180f t-stat will heat the water faster but should not be used on a raw water cooled engine. The problem is that many of these engines have only crude measures, or none at all, to tap into the 140 F cooling water..
With a high quality water heater like the Isotemp it will have a mixing valve built in as standard equipment. A tempering or mixing valve will mix the internal tank water with the cold supply. You will get more volume of 120 degree water by mixing the 140 degree tank water with the 70f domestic water.. You can do the same with a single lever faucet. Salt water through a quality SS tank should not shorten the life by all that much considering your engine is iron and lasts for many years..
My own indirect fired domestic hot water heater is being fed by 142 degree water today, as controlled by my outdoor temperature control. Because it is 45 F here today, and I don't need nor want my boiler running at 180 F on a warm day, the control drops the boilers hi-limit to closer match the outdoor temp and avoid needless stack loss.
The difference is that on a home system I have a priority setting for domestic water. In the event that we need lots of hot water it will drive the hi-limit of the boiler to 180 degrees if necessary despite it being in the 40's or 50's outside. On a boat with a raw water cooled system you are stuck with 140 F..

It will get hot but will also take longer to do so..