I've seen and used tankless heaters in Europe - they usually hang in the shower stall under the showerhead and are handy for storing shampoo bottles. I am not doubting Euro technology as I am using a Buderus mod/con boiler from Germany, Grundfos circ pumps from Denmark, and Uponor PEX and manifolds from Sweden in my heating and domestic hot water system -
I am also not denying any efficiency gains compared to an el cheapo standard tank heater - but many have compared apples to oranges in this thread, and I hope that you are as happy with the heater five years from now