... and if you are proposing to generate that hydrogen using electrolysis, that would involve using even MORE electricity from our (inadequate) electricity grid!
Granted, it could be time-shifted at will. But even battery-charging can be time-shifted (most people will charge at night, when normal utility demand is off peak anyhow). Granted, the electrolysis plant could be put next to a generating station. But either way it's subtracting electricity that could otherwise feed the grid. The reality is that TODAY, the way that hydrogen is produced commercially in large quantities is via steam reformulation of natural gas, NOT via electrolysis (which is too expensive because the overall efficiency is too poor!) ... but if you are using natural gas, where's the CO2 go? and you are still using a fossil fuel.
I don't suggest that I know more about fuel cells than Toyota does. But I do understand what their motivation is ... Politics. From Toyota's point of view, hydrogen fuel cells transfer ALL responsibility for emission control, CO2 emissions, etc to "someone else". The whole means by which the hydrogen is produced becomes "someone else's problem". It gets the regulators off their back. And on top of that, all of the auto manufacturers that have worked on hydrogen fuel cells have been receiving millions of dollars of government subsidies to do it ...
The reality is that ultimately there is likely to be more than one solution. Battery-electric vehicles with 200 mi / 300 km range (or more) for <$30k will be "good enough for most people". Fuel cells may end up being part of the picture for longer range. But they're not going to be a panacea. Hydrogen in the absence of government subsidies will end up being really expensive ... mark my words.
And the internal combustion engine is still going to be around for a long time.