It's the fundamentally superior technology. It's likely to be much cheaper than batteries in the long run, and I suspect will eventually equal batteries on efficiency too (fuel cells are technically batteries themselves). We can go into elaborate details on this, but that is the gist of it.

> I suspect will eventually equal batteries on efficiency too (fuel cells are technically batteries themselves).

Fuel cell vehicles also use batteries. The fuel cell charges the batteries, and the batteries power electric motors. So it's impossible for a fuel cell vehicle to be more efficient than a battery-electric vehicle.

Not to mention the massive losses generating the hydrogen, during electrolysis and compression.

Not necessarily. They can use capacitors instead. And the battery is only engaged when accelerating or braking. The car runs mostly on the fuel cell in steady state operation.

Those are just assumptions. There's no reason why you can't you reduce them to the point where they are non-factors. It's possible they go away completely, for instance if you use thermochemical production of hydrogen or store hydrogen in metal hydrides.

As I said previously, you don't need to perfectly match batteries on efficiency. If fuel cells get close to batteries, it's enough for them to succeed. The rest can be made up by a combination of lower upfront costs and light weighting.