stingray
Line Up and Wait
But those rules of faster heating vs. slower heating efficiency are NOT RELEVANT to the issue of tank based standby losses. Your tank type water heater HAS to keep the water hot all day. It doesn't just heat the water then shut off til you use more water, it heats the water, and if you don't use it, it will still kick on again in a while to maintain temp. THATS the energy loss you don't have with tankless.
http://en.wikipedia.org/wiki/Water_heater#Tankless_heaters
That's what I tried to say. If you use a slow recovery tank type (very efficient heating) but will loose some to maintaining. Compared to fast heating tankless (Less efficient) but does not loose to maintaining. You would break even. My boiler has the highest eff rating because it is variable heating (Only uses as much energy as needed to heat the water). So the slower you heat the water the better eff you get. The rep was right. Heating it faster lets more energy out the pipe without heating the water. You cannot just say one is better than the other without knowing how it is used. Washing your hands once a day with a 50 gallon hot water tank is not going to be as good as a .7 gph tankless. But heating a space with a slow recovery (sized right) tank heater is going to more eff than a 10 gph tankless.
Dan