Hydrogen can easily be stored in the form of titanium or nickel hydride (you can also use Palladium hydride, but apart of the much higher cost, I see no advantage in that one). The energy density, is however lower than liquified hydrogen, and it is tricky to load up the hydrides at a "pump station".....
I agree. A hygrogen distribution network would make a good strategic (aka terrorist) target as well. The only way it is conceivable replacement for internal combustion is if fusion (hot fusion) reactor research is ultimately successful. Producing hydrogen from other fossil fuels is just as pollutive, it just moves the pollution to areas with a lower tax base. Wind, hydroelectric, and solar could never produce the energy required to get sufficient hydrogen from hydrolosis and fission has the worst by products of all.
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