ICE vehicles conquered the world with abysmal efficiencies, they were around 10-15% when they already ruled the roads and the world. That is after we drill for oil, ship it, refine it, distribute it. Even today, manufacturers boast about engines with 40% efficiency in ideal conditions, which still translates to a meager 20-30% in real world driving.
Looking at efficiency alone is not enough.
> They're simply so much less expensive
Not yet they aren't. The upfront cost of an EV still makes it more expensive than an ICE vehicle. Also, they batteries are guaranteed to degrade, so the used market has very bad prices for EVs. At some point, they will probably be less expensive for most automobiles, but hydrogen can still play a part in trucking, trains, planes, boats and specialty operations.
Only about 64% of oil is used for transportation [1] and out of that, only about 50% for automobiles and light trucks [2] (even though for light trucks, motorcycles and other applications, EVs are not going to win probably). So BEVs could replace about 30% of all oil usage. The rest of 70% is up for grabs, so why not pursue hydrogen investment as a possible alternative?
https://www.eia.gov/energyexplained/oil-and-petroleum-produc...
https://www.eia.gov/energyexplained/use-of-energy/transporta...