It kinda hinges on what you do with the water. I fill buckets to wash the car, and I
Wash shop rags about twice a year, essentially by hand using buckets of hot water. I want to be able to fill a bucket with scalding hot water as fast as the faucet allows.
Present situation works OK, I have a 2.5 gal tank water heater under the sink, set about as hot as you can get it without popping off the TPR valve. This gives me enough hot water to wash hands with, wash my face after mowing, etc, or for filling buckets, it works OK. I would prefer to have a 4 gal unit, but am not inclined to spend the money to replace a good working unit right now.
Water heater is the blue box under the sink. It is a Titan brand unit, made in Italy.
I have looked at various instant units like you are looking at. Price just drives me away. Rheem has some well priced units, but I found several scary reviews on them and can only hope that they have resolved their problems (they would turn on for no apparent reason, bad flow switch possibly, and boil non moving water in the unit till it burned up).
I was looking at units in the 11K watt range as for me, the flow and temp rise for a given flow (they have charts of this available for most mfgs) was acceptable and I too have enough power to make it work.
HD has an Ariston 4 gal under counter that would fit in the area where my 2.5 gal is now but for $229 I hesitate to spend the money. These small units have a good recovery time.
Charles