Just did some research on the unit and may have some answers to some concerns.
Fluctuating water temp ~ the unit has a variable heater and mixing valve to deliver water at a constant 120 degrees regardless of incoming water temp.
Pipe sizing ~ The unit requires a minimum of 60,000 BTU/H. The standard 1/2" line on most RVs is large enough.
Cycling ~ The unit will not cycle off until you reach less than .5 gal/min flow. Every shower head I could find specs on was well above that number.
Time for heat ~ the unit has two settings, one for economy which keeps the water in it heated to just above freezing and a normal mode which keeps the water in the unit at 120F.
Tankless water heaters have been shown to save about 22% over standard heaters. Remove the electric option and consider how much propane you use to heat water and make the call for your personal situation. I can't locate a retail price but similar units are $1100 and up. More of a comfort option than a cost savings IMHO.
YMMV,
Jim