As far as I know, their only real downside is the initial cost....
I was just looking at them earlier, actually... Stumbled upon them while looking at other things. They were like 900$, but supposedly lasted forever, and are very energy efficient.
Things I would still need to look into before purchasing are like, maintenenace costs.. I don't know if there are any. If not or if they are minimal, and if the particular model passes the "user review" test, it sounds like a wise investment over a regular tank style water heater.
I wonder what kind of complaints people have?
One of the great things about them is that you should never run out of hot water. So that's a huge pro.
Maybe.. the water getting cold if it's being used in too many places? That would probably be a case of user error though, not having a big enough unit for your house.
I say do a little more research, and then go for it if you can't find anything wrong with them ....
Oh, I also only looked at Propane and Natural Gas models, even though they wouldn't be suitable.. we would need electric.