The point of demand factors is that load diversity allows lower total demand than the sum of the individual demands. In other words: not everything will be on full blast all at once.
In the situation you describe, you have one 'dominant load', so I don't see much opportunity for diversity.
Now the load itself modulates, when the incoming water is warmer or the flow is lower, it uses less power. But 10.8 kW is barely enough for a hand washing sink, so a smaller tankless electric can be expected to run full blast on a regular basis.
On the other hand once you are talking the aggregate load of multiple individual units, people run the hot water at different times, and there will be lots of opportunity for load diversity and demand factors. But I think you are asking about the individual units.
Jon