The automatic switch over may work well on the larger, more expensive AquaHot units. They have two thermostats. One keeps the electric element on. The other lights the diesel when the electric can't keep up.
You can run the heat pumps with both AquaHot switches are on. Since there is little load on the AquaHot, the electric keeps it warm but the diesel burner does not run. As the temperature drops, somewhere around 40 the heat pumps become too ineffecient and the DuoTherm thermostat controllers will shut off the heat pumps and switch to "Furnace". As soon as the minimal reserve in the AquaHot provided by the electric element is used up, the diesel will light.
None of this works very well for those of us that got the cheaper units once called HydroHots. They have only one thermostat that controls both the electric and diesel at the same cut in temperature. The automatic switching function will still work, but there won't be enough heat inside the HydroHot until the diesel switch is turned on.
It never made sense to me to run the noisy heat pumps if I had to keep the diesel burner idling for backup. Instead we bought a silent baseboard heater that usually keeps us warm enough by sitting next to my chair on a low glow. If not, heat has to come from the HydroHot in cold weather.
All of this brings up what I think is a problem in how our coaches were designed. If you are in cold weather by choice or by mistake you are reliant on the diesel burner. If it is cold and the diesel won't light, you get cold. As I've written before, I've rewired ours to support a few cheap space heaters I keep deep in the basement for an unplanned HydroHot failure. I can keep warm with the HydroHot, 50 amp shore power or by running the Onan.