Hydrogen is definitely being looked at and seriously developed. I think the issue of hydrogen being so explosive is somewhat blown out of proportion - think of natural gas and propane vehicles, they weren't exactly exploding into pieces in the streets. Here is some more info to dispel the hydrogen "myth" -
e-sources (by E4Tech.com)
I think the biggest hold up preventing full scale development of hydrogen fuel cells is the lack of infrastructure. If your car took hydrogen as a fuel, where would you go to fill it up? Also the fact that they can't just hold a big vacuum hose in the air and collect hyrdrogen....it cost money (and energy) to produce it.
