Point-of-use is the answer to a very specific complaint: you turn on the powder room faucet at the far end of the house and wait. Not because the water heater is failing, but because there are sixty feet of pipe between it and you, all of it full of room-temperature water that has to leave before hot water arrives. Type L 3/4 inch copper holds roughly 0.025 gallons per foot, so a 60 foot run is holding about 1.5 gallons. At a 1.5 GPM lavatory aerator that is a full minute of running the tap.
In Frisco this shows up constantly in a few places. The wide single-story floor plans in Frisco Lakes put guest baths a long way from the utility room. The larger homes in Starwood and Newman Village have wings that the main system was never going to serve quickly. Frisco Square lofts and older converted spaces often have no gas at all. Add casitas, pool baths, garage sinks, wet bars and office break rooms near Hall Park, and there is a long list of fixtures where a small dedicated heater beats redesigning the distribution system.
The engineering is refreshingly simple and the honesty required is about capacity. These are small electric units and the physics still apply. A 120 volt unit drawing 12 amps produces about 1.4 kW, which at a 0.5 GPM handwash flow gives roughly a 20 degree rise. From a 55 degree winter inlet that is 75 degree water. Warm, not hot. A 240 volt 3.5 or 7.2 kW unit on a proper circuit is what actually delivers comfortable water in January, and if the only available power is a 120 volt receptacle, a small 2.5 gallon mini-tank often serves that fixture better than any 120 volt tankless unit will.
The other honest point is what a point-of-use unit does not do. It serves the fixture it is installed at. It does not add capacity to the house, it does not fix a struggling main heater, and it does not warm a shower unless it is sized for shower flow, which quickly means 11 kW or more. Used for its actual purpose, it is one of the highest-value small plumbing improvements available. Used as a substitute for a properly sized main system, it disappoints.