I agree. I have only ever insulated hot water lines when they enter an unconditioned/vented, or uninsulated crawlspace.

That being said, there is no reason you cannot insulate from the tank to the wall. Just not sure what benefit it has.

Maybe if it was new construction and you are insulating to get a zero offset heat waste for being as "green" as possible you could insulate 100% of your hot water lines, but at that point you are probably insulating all the interior walls because you already drank the Kool-Aid™ of "perfectly" insulated and sealed home construction.