If someone's choices don't make sense, you're not understanding their motivations. Toyota didn't mistakenly think that hydrogen was the way of the future, they chose it as a trendy "future tech" to make them look green and keep CARB at bay while they continued to sell exclusively ICE-powered vehicles. It was never intended to be a mainstream technology.

(Their hybrid cars are cool but for many years after introducing them, Toyota was actively hostile to any attempts to charge the batteries independently of the onboard ICE generator.)