With gas a lot of the inefficiency is the chimney.
Think about what happens to the heat when an empty pipe goes outside from the middle of the tank when the flame isn't running. It leaks heat up the chimney constantly.
I believe in the next few years tests will emerge to show that tankless is not any more efficient than regular tank water heaters. The few dollars saved will surely be offset by the huge initial cost of tankless and the maintenance costs to flush them and replace the complex valve switching schemes to vary a gas flame.
I own a whole house unit and am debating to switch to a tank unit to heat my whole house. I have more thinking to do but am not impressed, so far. The clacking of the valves is noisy throughout the whole house but I have been informed I chose the wrong model for my application.
Another thought on your hunting cabin would be a radiator running off the tankless for 185,000 BTU of heat for quick warm-ups. Mind you a 20 lb. tank of propane would last about 5 minutes...LOL
In the dead of winter taking a shower with the heater adjusted to max I have to reduce the flow to get a nice hot shower. In the summer I have to turn down the heat or it is too hot. This part is not too bad for me, but the wife and the daughter seem to have a hard time adjusting the shower to their liking. they will add too much cold and the flow of hot drops off enough to kick off the heater and then they get blasted with cold. They are learning slowly.
If someone is taking a shower and someone else runs the hot water in the kitchen you loose a lot of heat (I try to time my showers to be the only user of water at the time.
Cost issues.
The initial cost is very high. Installation cost might be higher than you expect if you have to increase the size of the gas line. Also they require the big gas flue. If you are changing from a tank you will need to retrofit there also. When things go wrong, there is one place in Vermont that sells parts for my unit. They are really good with help in diagnosing the problems but the parts are very pricey and then the cost or the time to ship adds up also. I, being cheap, opt for ground shipping so several times I have done without hot water for a week.
I plumbed the unit to be able to back flush, but I have never had to.
From what I understand, the newer, larger units are much better throttling up for multiple users, but they have electronic controls which are very pricy to replace when they go out.
The good thing is you never run out of hot water.
If my unit requires a replacement I will be switching back to a tank.
One more point, the big sales point is that you have no standby losses so you save on gas. If your house is cool the effect is you get the heat in the house anyway so that only is an issue if you have the AC running not really a big deal in my opinion.
The place where a tankless would really shine is at a hunting cabin or vacation house where it would really be nice to have instant hot water when you got there and didn't have to wait for a tank to heat up.
My final verdict is get a big enough tank that is well insulated.
Roger Shoaf