Nipple isolates steel from copper
I researched water heaters and how to avoid corrosion and electrolisis, and learned that dielectric nipples are a good way (better way) to go. In the past I had used dielectric unions, but they do corrode. I like that these nipples have a sturdy-looking pex insulator inside them. The nipple went into the port on the water heater, I used it on both hot and cold, and on the drain port. Next, I used a threaded brass coupling (or if I wanted an elbow, I used a threaded brass elbow). Then I used a copper male adaptor and ran the copper lines. I soldered the copper pipe to the male adaptor before screwing it to the brass fittings. I feel that I will not have a problem with electrolisis or corrosion since the pex insulator separates dis-similar metals. There is separation (and insulation) of the electrical charge generated by having dis-similar metals in water and any corosion will be away from the water heater. I like that you use this nipple at the water heater tank,then brass, then copper. (I am talking about common glass-lined steel tanks) No need for this if you have a stainless steel tank.
For the drain of the water heater, I removed the hose bib drain which comes with the tank, but has a small diameter opening, and replaced it with a full-port ball valve. I used a dielectric nipple for the same reason already mentioned.
I also plan to use these nipples when plumbing hose bibs in my garden where I use galvanized pipes to support the hose bib. I am in coastal california, and I don't need a frost-proof-hydrant. My underground pipe is PVC, burried 18 inches, and where the pvc attaches to galvanized pipe for the riser, this is what I do. I use a glue pvc to male adapter, then I use a threaded galv coupling, then a 12 inch or longer galv nipple, then a galv 90 elbow, then a 4 foot long galv pipe which is the riser that sticks out of the ground and holds the hose bib, then I use a galv coupling, then the dielectric nipple, then a brass T, then I install a hose bib on the t port of the T, and on the straight port of the T, I use a brass nipple, and a hose bib that has a downward pointing bib (called garden hose bib). Maybe the dielectric nipple isn't necessary here, but in the future I will use them whenever it makes sence. I have seen plenty of corroded galvanized pipes, so when plumbing with galvanized, it makes sence to use dielectric nipples