I changed to a tankless for the same reason. I needed the floor space for other uses.
However, I prefer to have the unlimited hot water that the tankless provides.
How many times a day do you wash your hands at home? I guess you are going to have to either wait a few seconds and let the water get warm, or you can simply rough it out washing your hands in that freezing cold water!
The only time of the year that the "cold" hot water bothers me for hand washing is in the middle of the winter. Most of the year the cold water is at room temperature. Since I am a manly man I rough it out washing my hands with 70 degree water.