I looked at the tankless types when I did the last water heater replacement. Electricity is crazy expensive in California, so that version was out.
As noted above, the tankless needs a high capacity gas feed (and exhaust) to keep up with its rating, and my house was plumbed for neither, making the gas retroft version rather expensive.
One approach I did consider, was to put in a standard gas fired tank heater, and then run this hot water through a smaller tankless electric type. The idea was to do the primary heating with gas, and then assist with the temperature slump with the tankless. This was to help overcome the "teenager shower" problem, as we did in fact run a lot of showers in short order.
We found ways aroud the general shower problem - a clock in the bathroom.
BTW - as noted above, all of the newer high efficiency water heaters use thin walls to improve heat conduction, so they don't last nearly as long anymore.