On demand water heating can be useful. I have experimented with a Bosch instant hot 4 gal electric. My coach from the factory only offered gas heated water using an Atwood 6 gallon tank. I looked into adding an electric heating element to the Atwood but decided to install a separate unit, Bosch 4 gallon instant.
One thing to keep in mind is that your 10 gallon tank has a heat exchanger that heats the water from the engine cooling system. Check to be sure that it is designed that way but it is highly likely. If so, it's nice to take advantage of that free hot water.
Based on several models, I elected to place the bosch instant hot in series with the stock 6 gallon gas Atwood. The water flows from the Atwood to the Bosch and then to the hot water piping in the motorhome. This gives me the ability to take advantage of the free hot water from the engine cooling system, use the Atwood as a pre-heat to the Bosch if needed and as you would like to do, use the Bosch instant hot 4 gallon electric by itself. The system works great except for the times when I am without 120 volt power and need to rely on the Atwood for gas heating. This causes the hot water from the Atwood to mix with the cold water in the Bosch causing a little inconvienence with the hot water temperature.
I did purchase a 12 volt circulator pump which will solve the above problem. It will be manually switched on/off. The circulator pump will circulate the water through both the Bosch and the Atwood offering a full 10 gallons of hot water using any of the 3 sources. This design requires some unique plumbing for RVs but is very common in commercial buildings with central hot water systems.
You can add an instant/on demand hot water system many different ways. This is one example.
I can say that even with the system without the circulator pump installed, the bosch has worked very reliably. It does need a little help when outside temps drop below 50f. The bosch I used uses a 1440 watt electric heating element.
I have not thought about installing a gas instant hot water system for the rv but have used them commercially. I would assume that a gas instant would work fine but I would always keep your tanked system available either full time or possibly use valves to take it in and out of your hot water piping offering the ability to use the tanked system when needed.