Ostensibly, you'd save more than half of the heating cost, right? 120°F - 68°F = 52°F vs 120°F - 98°F = 22°F, at least, for the amount of 98°F water you have available.
Since there are storage losses, these also add to the cost, i.e., every time the water heater goes into a heating cycle when no water is being used.
A tankless system will not have that loss, since it's an on-demand heater. There will be a lag, since these systems monitor flow and require a certain level of flow before they start heating. Some people find that objectionable, but others do not.
A tankless system dumps a substantially higher amount of power than a regular water heater. This is most noticeable in the exhaust requirements, which is usually 2 short stacks that must immediately exit the garage, or whereever it's installed, compared to the typical water heater B-vent that exits from the roofline. The gas inlet is substantially larger, I think. Noritz
shows up to 250kBTUh, which is about the equivalent of 15 of your largest stove burners all running at the same time.
Here's a discussion about economics of water heaters:
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