Generating a lot of hydrogen is one problem. Developing safe and easy to use storage is another. This is nothing new: gasoline is fairly toxic, highly inflammable, and requires a huge amount of infrastructure. We take it for granted because it has been a part of our lives for so long.

I agree that liquid hydrogen storage in vehicles is unlikely. The dewars necessary to keep the hydrogen a liquid at such temperatures would likely be expensive, heavy, and perhaps fragile in the event of an accident.

Pressurized gaseous hydrogen needs to be at very high pressures in order to store enough gas to have any range. I've read some of the proof of concept vehicles use gas at 5000 PSI. Have you ever tried to fill your own propane cylinders? In many places, you aren't allowed to do that on your own without special training. Pressurized or liquid hydrogen would be a lot harder for average people to handle.

Back in the 1970s, the Munich bus system tested a hydrogen powered bus that used lithium to form lithium hydride. Lithium hydride binds hydrogen fairly loosely - warm it and it'll release the hydrogen. The bus cleaverly used exhaust heat to warm the hydride, with some form of primer to get the engine started.

Some time ago, I read about experiments to store hydrogen in carbon nanotubes. Here's a representative article. I'm pretty sure research is continuing on this topic.

For a pretty good source of hydrogen related news, you can go to the Hydrogen Gazette. Scroll down and take a look at the Ford Model U concept car. It uses 10,000 PSI storage tanks and some pretty interesting technology.

Here's some more info on metallic hydrides and nanotubes for hydrogen storage. The root page is on the Department of Energy website.