Last year we installed about 50 tankless water heaters and about 25 conventional. They are really catching on, and for good reason.
5 years ago, we installed I think 2 tankless.
A bit more up front for the larger gas lines and plumbing involved, but they are just so more efficient.
I agree, they are a bit more up front, particularly if you are putting it into an existing residence. I was fortunate to add mine into my new construction. The minimal cost of the endless hot water is remarkable. Why heat a whole tank of water and let it sit and cool until you need it?