I think tankless is the worst option for almost everybody. Keep in mind that you need a flush kit (often not included) and yearly chemical flushes for it to last (or have a warranty at all). That alone pretty much kills any cost savings they pretend to have.
From an operational perspective, I don't like tankless. If you want a trickle of warm water to rinse off dishes or something, it can't do it. It needs a flow of a few gpm before it will light.
The only major upsides to tankless are if you want six people to shower at once (and I'm not convinced that most are big enough to do that without them all being lukewarm) or if you really need the space back (eg, shrink mech room to add a basement bathroom).
