Thanks, but yeah, you really are late. ;-)
That type of device is exactly what we have been talking about all along. Only difference is the manufacturer:
AMH3K-7 (requires power under sink)
I'll know more on Tuesday. My daughter closes on the house on Monday and we'll be heading there (3 hours) on Tuesday to clean and fix a few things before moving her in later in the week. The plumbing is the first issue I will be investigating.
re: "The only "downside" that my wife complains of is that when you turn on the cold water, it's actually a bit tepid for the first 20 second before the ambient temp of the cold water is available."
Actually, that's not the only downside.
First, the condition you describe above basically replaces the waste of water and time while waiting for hot water with the waste of water and time while waiting for cold water. It's probably less waste, but there is still some.
However, the other downside is that you are "constantly" using hot water and sending cold water back to the tank. Is that less of a waste of energy than the water cooling off in the pipes after each use and then having to be drawn all the way from the tank to the fixtures? That depends on usage, size of the house, distance from the WH, etc.
Yes, instant hot water is a really nice convenience, but it's not free.