You can't beat natural gas as a home energy source. It is so much cheaper than electricity for anything other than possibly a heat pump. In your climate, an air source heat pump is probably a great way to go with nat gas backup, if that is possible. For heating water, only passive solar is cheaper, but of course less consistently reliable.
The philosophical bit here is why nat gas is so much cheaper. Every time you convert an energy source from one type to another, there are losses, from efficiency and just basic physics. So burning nat gas to make electricity means you lose something like 30% of the energy content of the gas in the conversion of nat gas to electric. Then you lose more along the way in transmission, etc. Whereas nat gas is pretty close to drill hole in ground, pump it out and send it to houses. I do believe they do one refining step on it to take out certain components for other uses (like propane, etc, and helium often comes from nat gas) but the point is so little is done to it that you are not converting that energy source to anything until you burn it in your house. And modern gas appliances can be 95+% efficient quite easily. Very small losses in extraction and supply means very low cost energy source.
I don't understand the complaint about the delay for on-demand water heaters. There is always a delay, no matter the source (tank or tankless) as the water in the lines is cold, unless you do a recirc pump as a few folks mentioned. Of course it depends a lot on the distance, too. Is the delay slightly longer on tankless? Yeah a few seconds as it has to fire up first, but we are talking maybe an extra 5-10 seconds here and if you are using hot water for a shower or anything long just wait a few seconds for it. If that is too much for you, either do a recirc system, or put small electric point-of-use heaters at each faucet you want instant heat so it heats the water immediately until the hot water arrives from the main unit. For a long run, that may make sense and our kitchen island is like that. In hindsight I wish I put a POU heater there. Still probably could, if I really wanted to...
But make dang sure you have soft water with a tankless water heater or you will destroy it fast.