One thing I saw that probably cuts water usage by at least double digits from Gen 1 TWHs was the recirc loop. TWHs take a bit to get up to temp, so you're basically just dumping water down the drain. Some come with a recirc loop (not sure how this works with regards to opening a tap and waiting) that gets the water up to temp and then sends it to the hot water header. Again, it's just one more pain in the *** thing to break and... Jeeze, I dunno man. I'd rather just buy a 12" thick bat of insulation than worry about 100 parts failing.
Too bad we can't just make these things out of hastelloy, make them vacuum insulated pressure vessels, and they'd outlast the cockroaches.
I have no earthly idea what almost any of the words in this post mean, but I will say that my totally awesome, 1 year old 40 gallon hot water heater has what I think is the same problem you mention. Water in the pipes between the heater and the shower head cools off, and it takes a minute for piping hot water to work its way through the labyrinthine plumbing system.