well, in theory, i think those instant heaters are more cost saving than those big tanks type.
Cos, capacity is smaller, so water gets heat up faster than in a bigger tank. Also, it have shorter pipe to faucet so you won't be running the cold water, wasting it until the warm water arrives.
disadvantages, capacity small, so the cool water steps in faster if you take a long bath...
I also have the same rationale. Facts also show that the instant wall ones use less electricity.
The cool water will come back meh? I thought it is constantly heating when it is on?