Hydrogen

There are really 2 topics here. The first is the use of hydrogen in a small community. The second is the use of it in the broader economic society.

Local use

Hydrogen does not have to be pressurized for storage. That is a requirement for efficient shipping. I am not talking about shipping it, but rather using it locally. There are many low tech solutions for local storage of methane and hydrogen, have a look on the instructables site. There are some very clever people there.
One I particularly like is the equivalent of a weighted upside down bucket in water. There is an inline with a check valve, the outline runs through a little tank to eliminate flashback. When you want to use it you simply open a valve on the outline and apply pressure.

In saying that there are a lot of other precautions that need to be dealt with. Like with methane digesters it would probably be recommended that the storage be buried and removed from dwellings. But they are not deal breakers by any means.

Use in society

Hydrogen can be produced using diverse, domestic resources including fossil fuels, such as natural gas and coal (with carbon sequestration); nuclear; biomass; and other renewable energy technologies, such as wind, solar, geothermal, and hydro-electric power.

The overall challenge to hydrogen production is cost reduction. For cost-competitive transportation, a key driver for energy independence, hydrogen must be comparable to conventional fuels and technologies on a per-mile basis in order to succeed in the commercial marketplace. 
(http://energy.gov/eere/fuelcells/hydrogen-production)

Given the pending energy crisis, market forces could well move us in a direction that makes hydrogen comparable to conventional fuels. The problem is that it is unlikely that the market forces will be gradual. If there is a sudden upswing in the cost of fuel due to issues in the middle east, then it is impossible that hydrogen production will come online quick enough to be affordable to the average person.

Electrolysis

In chemistry and manufacturing, electrolysis is a method of using a direct electric current (DC) to drive an otherwise non-spontaneous chemical reaction. (link)

oxyhydrogen generator

http://www.wikihow.com/Make-Oxygen-and-Hydrogen-from-Water-Using-Electrolysis

Create hydrogen

http://www.instructables.com/id/Hoffman-Apparatus-for-pure-hydrogen-gas/

Developments

http://www.ibtimes.com/producing-hydrogen-backyard-could-be-possible-scientist-307822

Commercial options
At $34k it's a bit pricey
http://www.victorygasworks.com/

Home made hydrogen generation
http://www.ecogeek.org/component/content/article/1322

The future of hydrogen transport might be closer than we think.
Honda has begun work on a smaller solar hydrogen station prototype intended for use as a home refueling appliance. Capable of an overnight refill of fuel cell electric vehicles it is designed to be a single, integrated unit that will fit in the user's garage. 
http://www.gizmag.com/honda-solar-hydrogen-fuel-cell-refueller-electric-vehicle/14049/