When I first saw this drop I went down so many rabbit holes...so much sauce in this post alone....😉
(media.greatawakening.win)
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Yes, water is not too bad of a byproduct. Neither is CO2 though. While that isn't the only byproduct of hydrocarbon oxidation, that is the main one. Others can be reduced by other means (catalytic converter e.g.).
I really am not in any way saying using H2 as fuel is bad. It's just that your OP was making it sound like it contained a bajillion joules of energy per cubic centimeter. It doesn't. Its just a chemical, like any other. Some benefits over hydrocarbons, some detriments.
As for its use in airships, that has some merit. It might be something we should revisit as an infrastructure in the future.