you may lose a bit of water pressure if two or more taps are running, but we solved that by having a pressure compensating shower fitted, mine cost about �100 and they run straight of the mains water so more energy efficient and you dont have to have them wired to the electric.
Even if you dont get one of these the loss in pressure is hardly noticeable on newer combi boiler has they have been designed around this issue because people are wanting larger homes with en suite bedrooms and WC rooms downstairs.
And think of the space you now have with that hot water tank been removed, so you may or may not experience a slight drop in pressure but it is a small price to pay for instant hot water.
you can also get kitchen taps that use less pressure because they have a small retractable shower head fitted to rinse dishes and veg etc, so dont go worrying.