Actually here code requires a 120 setting on the tank... OR the valve... Some plumbers do both. Its a pretty new requirement here (less than 5 years.)
But I just open my heater up and change it so it gets hot like its supposed to... I hate not being able to get HOT water when I want it. Being as I do all my own plumbing, electrical, construction, etc.. its not an issue for me.
I also HATE legislation that comes about because people are unwilling to take responsibility for themselves.