When I installed my tankless (replacing a 50 gallon tank), I had different constraints to work around.
1. The house (built in 1957) is all 1/2" copper plumbing, so we are already used to the concept of "one faucet at a time". There are two of us there most of the time, three during the winter, so it's easy to let others know when showers will be taken, laundry done, dishwasher run, etc.
2. Wife came from a country house that was all-electric. You lose power, you lose EVERYTHING. Since we are on city water and natural gas, she still wanted hot water in the event of a power outage. Most pilotless systems use electric for ignition. No good. I told her that some use batteries. No good, just her luck, the batteries would be dead. Found a Bosch unit that uses a turbine in the water line to spark the ignition. Makes a whirring noise while running, but it's a reminder that someone is using hot water.
The bathrooms and kitchen are grouped right next to the utility closet and water heater, so hot water is available within 20 seconds. The laundry is farther away, but that is no problem.
After installation (about 15 years ago), we found that the gas bill went down, but the water bill went up for a few months. We were enjoying hot water for longer showers. When that novelty wore off, water usage went back to normal and the gas bill went down even more.
Only problem encountered was with a thermal safety switch that flaked out. Fixed that and have been enjoying hot water.
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