What he's saying is that i'd be heating up a full tank of hot water unnecessarily with a conventional system.
This is a common
'misconception'
If you have (say) 100 gallons of hot water, and you use 10 gallons, then you only have to heat the 10 gallons of cold water that replaced what you used. I've had
'discussions' with people who will swear blind that if you had a smaller tank (say 50 gallons) then it would take less energy to reheat it. In practice of course, the cold will mix with the hot and so you'll heat more water, but starting from fairly hot.
It is true, however, that when you have a tank of hot water standing there, it will lose heat all the time. Good insulation will reduce that, and if you put it in a closed cupboard then you will have a warm cupboard which is good for keeping cloths dry - I believe people call them "airing cupboards"

- and further reduce the heat loss.
Tank size and boiler capacity are a tradeoff. As you draw off hot water, the tank will cool from the bottom up and at some point the boiler will fire up. For a typical DHW cylinder, the heating coil capacity is limited and you won't be able to draw off hot water indefinitely without it cooling somewhat - and beyond matching the capacity of the coil, having a larger boiler won't help.
For the central heating, there is really next to no difference between a combi and a conventional system - the boiler will be short cycling all the time you have the heating on and there is a room stat not satisfied. However, a combi typically has to be grossly oversized (to give the DHW flow rate) compared to the heating load. I reckon my flat has an average heating load of around 2kW, maybe a bit more. Because it's a combi, the boiler is rated for almost 30kW (but still can't give a decent DHW flow rate) and can range down to about 9kW (ie it's minimum output is getting on for four or five times the typical load on it).
While expensive, and with certain downsides of their own, you can get the best of both worlds (stored heat with electric backup by immersion heater AND mains pressure DHW*) with a thermal store/heat bank. With a thermal store your DHW flow rate is restricted by the capacity of the heat exchanger coil inside the tank, but a heat bank can have a huge plate heat exchanger with a capacity of 100kW or more. If you run the entire system open vented, then the reheat capacity is only restricted by the boiler size - and so you can run the boiler at it full output in shorter spells, and it should be in condensing mode most of the time.
The store will also separate the boiler flow from the central heating flow - so you can have a system with TRVs on all radiators and use a modulating pump (like the Grundfos Alpha II) which leads to a quiet system.
My brother has fitted a thermal store in his house (but then he has solar and wood burning stove as well), and I've just
fitted one in my flat.
* Without having a pressurised cylinder.[/i]