Batteries are generally better for short term storage, aka daily usage. Pumped hydro is generally better for long term storage. We need both, but we can generally efficiently get to 70-90% carbon-free electricity without long term storage so we haven't need much long term storage yet.
> Pumped hydro is generally better for long term storage
Up to a point. Very long term storage is another thing again.
This twitter/X post has a very nice animated graphic of the predicted evolution of storage technologies over time (from 2020 to 2030), plotted against two attributes: duration of discharge, and # of cycles per year.
Li-ion batteries and hydrogen are expanding the areas where they would dominate; pumped hydro is shrinking. Compressed air is getting squeezed out (no pun intended).
PHES consumes surprisingly little water, even in a desert. It's an order of magnitude less than evaporated by a thermal power plant of the same energy throughput.