Gravity systems (non-combi) usually have a control set-up that gives priority to 'hot water' over 'heating.'
If it's warm enough for heating not to be needed, then there's no need to set a low temperature on the 'HW'.
Whether you use the boiler or the immersion, using short bursts of power is rarely economical. It's much more efficient to use set times to keep the tank topped up, especially with modern well insulated cylinders. Heating them up from stone cold is very inefficient.
A lot of folk do still insist on using short bursts though. If you do, I would say the immersion would make more sense since that's all you're heating up. Otherwise, you have to use a lot of energy heating the whole boiler up.