I did lots of research a few months ago. John's post #5 sums it up very well.
I've had a 80 gallon electric tank that, so far, has lasted 28 years! Researched the tankless but decided on the conventional tank. Went with a basic 50 gallon unit. Natural gas is also not an option for me.
To reduce costs, I added a timer to control the power.... It's on for about 4 hours in the morning for my daily noon shower. Still provides warm water at midnight but haven't tried a hot shower at that time. Timer consists of a 2 pole contactor for the 240v with the coil activated by a simple timer at a nearby outlet. I plan on moving the basement timer to a more accessible location like the master bath.
In conjunction with the timer, a tempering valve was added to the outlet of the tank. I can turn up the tank temp to 150 degrees and the tempering valve will reduce the temp to house to 110* or so. This will reduce hot water use and keep the tank water hotter while it's powered off.
Another neat system is a add-on heat pump for a tank. Check out the Niles Geyser here:
http://water.nyle.com/r-series/
Check with your power company to see if it qualifies for a rebate. It wsn't quite efficient enough to qualify for my POCO's $500 rebate.
Another great link for LOTS of water heater tips:
http://waterheatertimer.org/
I agree a point-of-use tankless may be a good choice for your addition.
Been thinking of getting a tankless just to heat the water a bit for washing my cars!