Well it's to do with the amount that you're storing, the time to refuel and safety.
BMW are favoring this technology and the best that they've managed so far is a range of 217 miles
http://archives.cnn.com/2001/TECH/science/03/1 6/hydrogen.cars/
However in order to get that they couldn't compress enough hydrogen into gas cylinders. They'd have to be ridiculously strong and hence heavy . So they use liquid hydrogen but that needs to be at -250 degrees C which makes keeping it cold and refueling it a nightmare.
Remember Nitrogen and Oxygen are liquid at warmer temperatures so if you expose it to the air you'll start liquifying the air!
Then there's the danger aspect, not only is it explosive in air (and way more so than petrol) but there's the usual danger of cold burns with liquid gasses - just imagine a rear-end shunt!
There is another technology which is solidifying the hydrogen into a solid metal hydride which gets around a lot of the problems but is still too heavy last one of these I saw weighed half a tonne.
However I think BMW has it right Hydrogen is much better than batteries as a way forward-
Who wants to change batteries or recharge every 250 miles?
Here's a kit to run your car on it now
http://www.switch2hydrogen.com/
Just not approved yet
funny that :c)