There are plenty of on demand water heaters in both gas and electric.
Combination Boilers that provide both hot water for heating and hot tap water are advancing quickly. Flexible PEX tubing these cut out a ton of traditional cutting and brazing plumbing labor to install hot water loops. It's also a lot more efficient to move hot water to a heat exchanger of some form in each room than to push air through ductwork. Some of these rigs also can be easily combined with a solar thermal roof array, further cutting your gas or electric costs.
I'm pretty excited about the last option, since I have an older house with poor air return paths, which means my furnace is almost always ingesting chilly basement air rather than getting a nice recirculation of heating air that's already been heated. Not to mention radient heat exchangers are silent and allow easy individual room temperature control with the smarter thermostat systems.