Just something to try - with the engine up to temp, and the heater set to hot with the fan blowing, can you feel any appreciable difference in temp between the in and out pipes on the matrix (under bonnet)?
The other thing to consider (don't think it's been mentioned yet) is the blending flap in the heater box - does the hot/cold slider control move smoothly, or even feel like it's attatched to anything? I'm pretty sure that it's cable operated, and they can become dislodged or even damaged by ham fisted radio fitting.