As Helen rightly suggests, there is a proper wanding technique required for using an in-line heater. Usually 4 wet passes (at 300-400psi over 50ft of solution hose) followed by a few good dry passes, then once the coil of water's heated up sufficiently, you do your 4 wet passes again and so on...
I find in line heaters very effective and the heat at the wand is more than adequate. You will NOT get a constant flow of hot water from one though, which I personally don't find a problem at all...