It's not hydrogen is all better as some people here on HN seem to think the argument is, it's just that both battery powered vehicles and hydrogen powered vehicles both have some advantages over the other that might be very beneficial if used together.
Long term, with enough battery powered electrical cars on smart grids, charging will be synchronized with the electrical power levels. And then we are back to electrolysis using 3x the electrical power.
I thought storing hydrogen was challenging, since hydrogen atoms are so small?
I mentally substitute ammonia for hydrogen when the question comes up, because it is much less implicated in embrittlement and is otherwise quite similar to hydrogen. (IANA Chemist, but I've read that ammonia actually carries more hydrogen atoms than elemental hydrogen does, at the same pressure.)
For commercialization efforts see See also http://www.bloomenergy.com/ and http://ballard.com/.
Also - if the power source (like geothermal or solar) is remote, energy transport via high tension line can be inefficient. Hydrogen can be seen as cheaper transport of energy.
[0] - https://en.wikipedia.org/wiki/Polymer_electrolyte_membrane_e...
[1] - http://www.sciencedirect.com/science/article/pii/S0360544206...
[2] - https://en.wikipedia.org/wiki/Proton_exchange_membrane_fuel_...