If its your only heater you might run into trouble in the winter if your return pump stops for whatever reason and your not home to notice.I have used to have one in the overflow.....but now, one in the display and 2 in the sump.Pretty easy to hide one in the DT.
I'm not a fan of keeping all my heaters in one place.I speak from experience on the return pump not running once when I came home from a trip...tank was pretty chilly and Frank has another good point in that if you do loose the circulation pump (inferior quality pump,yrs past a service date,snails etc) and your overflow drains with power to the heater :: .
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