You're largely right. But, consider that ANY alternative to our transportation based infrastructure is going to cost muchos $$. People see Hydrogen in a somewhat skewed view I think; as a fuel itself. It is of course, but I like to think of it (meaning fuel cells) as energy storage.
It's very true that Hydrogen is (relatively) easy to extract from hydrocarbons, though obtaining it this way solves only the petro supply issue, not the pollution one. Therefore it's only one side of the solution. The other is clean(er) replenishable energy, on a gigantic scale.
The safety issues are not much worse than gasoline I think. To be viable at all, it would need to be in a liquid form, and technologies exist to limit vapourization. Even so, just under 2x the volume of liquid h2 is needed for an equivilant volume of gasoline.
The situation is dire.