> Tank heaters seem to be "the way we've always done it", which often
 > isn't the best way. I still stand by the theory that it makes more
One question I always ask is, "Why do they do it this way? Why not [this 
other way]?" The tradeoffs are apparently in favor of the tank-type water 
heaters for most applications.
 
I did have a thought: Many homes aren't designed for energy efficiency. A 
worthwhile consideration when doing the basic layout would be to have a 
Utility Center where the water heater, laundry, kitchen, and bathrooms were 
more or less centered. This would minimize the runs of piping and electrical 
wiring. A side benefit would be very little wait for hot water; my experience 
is that 30 feet of 1/2" pipe takes only a few seconds to purge. Longer runs 
seem to require an inordinate waste of water.
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