I agree, and at same time in a place where there is longer demand periods that is also where a storage tank that allows some pre conditioning to happen may lessen wattage needed. For occasional hand washing you possibly have enough water in supply pipes that has warmed up to near room temp to get desired output temp, but if demand has been enough that much cooler water is now entering you may not be able to achieve desired temp at same flow rate anymore. Maybe in the movie theater situation you don't care so much as long as it isn't too cold. Hand wash sink in food prep area, health care, etc. some regulatory party might want to see a certain temperature with some consistency?