the pro's and con's of tankless hot water heaters?

The jury's still out for me on tankless hot water heaters. I was catching up on my reading today and saw an article in Friday's Dallas Morning News Home Center that did a good job of explaining the pro's and con's of going tankless.

PROS:
1. Tankless hot water heaters are 50-70% smaller than traditional water heaters.
2. They generally provide an endless supply of hot water.
3. Tankless hot water heaters use less energy because they don't reheat large capacities of water over time.

CONS:
1. Tankless heaters generally use 15-30% more water and since they require extra warm-up time before they generate hot water.
2. They squeeze water through constricted coil pipes to heat a smaller volume of water which means a reduction in water pressure.
3. The up-front cost of a tankless, on-demand system averages 2-4 times higher than a traditional water heater.

Seems to me like there will be situations where tankless is the way to go and other situations where it would be best to stick with an energy-efficient traditional water heater. There are other options: a solar water heating system or the production of hot water as a by-product of a geothermal HVAC system. Looks like each situation requires a look at all the options to find what is best for you!