I think it may depend on what the (worst case) goal of the solution needs to cover?
If it includes actually *needing* a bowl full of washing-up temperature water several times a day than anything 'instant' is going to have to be pretty powerful, as is any local water store, if not either quite high capacity or high power (for reasonable recovery time).
I've no idea how powerful our balanced flu combi-boiler-sized multipoint water heater is but even that would take quite a time to fill a basin with hot water (mainly the time taken to get the hot water to the basin) and a fair time to fill even a corner bath, as does the combi boiler in daughters flat (where you start the bath running then go and do something else for a good time).
When having baths at Mums years ago with a big HW cylinder you could run a bath pretty quickly (all be it only one without waiting ages).
And if you were suggesting filling a kettle with hot water from any such hot water source, I'm not sure what advantage that would be other than saving time?
There isn't anything much more efficient than a kettle (the element in direct contact with what it's heating in a reasonably insulated (plastic?) container) and so likely more efficient than heating and storing the water to use later or from an instant heater (unless gas because of the potentially cheaper energy costs).
If you are talking of washing crockery, depending on how much and how heavy the soiling (baked on stuff that might appreciate being soaked), I wonder if Jeff could test / vouch for how practical it might be to wash a plate under the instant hand washer?
Cheers, T i m