My WH is set at 120 degrees. Not sure what the actual temp is at the faucet, but it's hot enough for bathing, laundry and the dishwasher.
120 is hot enough to prevent bacterial growth. Assuming your incoming water has been properly treated it's enough. If you're on untreated water you may want to set it at 140 or higher which is hot enough to not just prevent growth but to kill any bacteria present.
And while there is a very slight risk of promoting legionellae bacteria when hot water tanks are maintained at 120ºF, this level is still considered safe for the majority of the population. If you have a suppressed immune system or chronic respiratory disease, you may consider keeping your hot water tank at 140ºF.
In my last home (very large home) we had a 100 gallon "Super Store Tank" which is basically a non powered, super insulated giant thermos bottle to store hot water.
Webbed feet?
This lawsuit resulted in the American Gas Association changing the max temp available on a water heater from 160 to 140 and the recommended from 140 to 130.