Tankless is the way to go, I have no idea what others are talking about here re: delta temps - they work fine up in Minnesota, and I doubt you'll find much colder inlet water temps than that. Additional tank? What? I've lived two places with tankless water heaters now, and both just bolted onto the wall directly into your piping. No tanks required unless you live in a large house and can't wait for the water to get hot due to the length in the pipes. Tank heaters have the same problem.
Tank heaters don't suffer the problem of the cold water sandwich. I got the mini-tank with my tankless to get rid of this problem.
I got a 6 gallon tank, but you can get "tankless" heaters now that have built-in 2-gallon tanks, specifically to address this problem.
Only thing is to oversize by a bit, which will ensure even during cold periods it can get hot enough for you.
Once you go tankless you will never go back, it's honestly a lot like Tivo - why would you ever go back to the dark ages
For colder northern climes, I think it's almost mandatory to go with 180000 - 199900 BTUs, at least for a detached home.
I've had both tanks and tankless now, and to be honest I think I'd be happy with either, as long as the tank was big enough. In a regular home with a regular sized tub 50-60 gallons is fine, but for my current home with soaker tub, I'd want 75 gallon.
Yeah, you shouldn't go tankless if you think you'll save money, because you probably won't. The up front cost is usually significantly higher, and there are potentially more maintenance costs - flushing the tankless every year or two. That said, you technically should be draining a tank too periodically, and checking and replacing the anode rod. Most people do neither.
It also should be noted that a correct tankless install will include the proper valves needed for flushing the tankless. There have been some reports of people getting these tankless machines installed without the valves (because they're a separate purchase), which means they can't actually flush the machines without disconnecting the plumbing.
BTW, when I first got my tankless it wasn't working properly. It kept on refusing to turn on periodically, a couple times a week, saying I had some sort of venting problem. Absolutely horrible for showers. They checked several times and there was no venting problem. It was a manufacturer defect. Finally they replaced the motherboard with one with an updated firmware ROM and the problem disappeared. I feel like I'm talking about a computer build now...