Interesting. So essentially this would be considered a hybrid water heater? Your setup sounds more promising and much less of a compromise to me than a full on tankless system.
That is what it is a hybrid system. If you google tankless water heaters you should find the correct method is to have a circulation pump connection to each station and/or under cabinet electric heaters etc. to cover for the time it takes the tankless to get hot water to the faucet when in use.
I would even suggest a circulation pump for standard water heaters when you have long runs, really cuts down on how much water gets wasted while waiting for hot water to arrive. My pump has a timer and I can have it shut down circulation during the night and start up just before we start our morning routines.