Depending on where you live, if you plan on having a professional install this with a permit, there are several potential local plumbing code regulations which may hamper that plan (expansion tank on the inlet to the heater, the T&P relief valve piped to near a floor drain, etc.).
If this is a DIY project, it would be an interesting concept - as long as you realize that you can't take a 20 minute shower, and that as soon as you use up a fair amount of the storage, it will take quite a while to replenish (rule of thumb is approximately 4 gallons per hour recovery per kW of heating element size). Another rule of thumb is that only about 80% of the storage capacity is available hot water, due to colder incoming hot water mixing, stratification, etc.