It’s less that (IMO) - cottages and roads are usually not as dense on steep hillsides and the like, though of course they can’t be ignored entirely. The pipes involved are usually not the big issue, and the pumping ops are usually not the big issue either.

The business model for pumped hydro requires relatively low cost to be economic and if it requires building a giant concrete water retention systems on top of large flat topped hills/mesas, near large drops in elevation, with water retention at the bottom of the large drop that is also really really expensive to build and requires specific geology to be economic.

And if something gets messed up, it’s a huge liability [https://en.m.wikipedia.org/wiki/Taum_Sauk_Hydroelectric_Powe...], as it can cause very damaging flooding and be expensive to repair/replace.

Worth doing when there is cheap power that can be stored and sold at higher rates later, but construction costs are really a huge part of it.