The there’s the issues of:
long wait for hot water at distant faucets
Power or fuel cost might actually increase not decrease
added cost of regular maintenance especially with hard water
added complexity of the unit…….service and parts cost
tank service life 10 years……….tankless half that life
high cost of install…….plus new gas or electric service
might increase use so sewer and water cost increase
Long story short tankless are NOT living up to the hype.
Not to say that a tankless is best for your application, but much of those statements are incorrect.
Once the heater detects flow, it fires. It's not really any different than any setup, if a faucet is from from the heater, it's going to take a bit to get hot water, regardless of the heat source. In my old house, the kitchen was the furthest from the boiler and the pex ran in the slab. If water hadn't been used all day, it would take a good 2-3 minutes before getting hot water.
If you have hard water, it's bad for everything using water, to include your clothes, dishes, body, cars, etc. Water softeners aren't that expensive.
Cleaning the unit out annually isn't a cost. Just an hour or so of time.
They are actually fairly simple. Most techs are used to working on them. The old 400lb boilers and tank water heaters are becoming relics of the past. Most new construction has "combi" units.
Can't blame a builder either. ~$2500-3k and you have heat for the house and hot water.
Most tankless units last at least 15 years. If they truly sucked, they wouldn't be getting used all over the place.
I've constantly been told they don't have the "power" to heat cold water. My water is about 36*, to the point that if I put a pitcher of water in the fridge, it would warm it up. I can set my boiler high enough that I can run a pressure washer off it and steam clean stuff.