Although liquid hydrogen gives a high
Isp, its low density is a significant disadvantage: hydrogen occupies about 7x more volume per kilogram than dense fuels such as kerosene. This not only penalises the tankage, but also the pipes and fuel pumps leading from the tank, which need to be 7x bigger and heavier. (The oxidiser side of the engine and tankage is of course unaffected.) This makes the vehicle's dry mass much higher, so the use of liquid hydrogen is not such a big win as might be expected. Indeed, some dense hydrocarbon/LOX propellant combinations have higher performance when the dry mass penalties are included.
Due to lower
Isp, dense propellant launch vehicles have a higher takeoff mass, but this does not mean a proportionately high cost; on the contrary, the vehicle may well end up cheaper. Liquid hydrogen is quite an expensive fuel to produce and store, and causes many practical difficulties with design and manufacture of the vehicle.
Because of the higher overall weight, a dense-fuelled launch vehicle necessarily requires higher takeoff thrust, but it carries this thrust capability all the way to orbit. This, in combination with the better thrust/weight ratios, means that dense-fuelled vehicles reach orbit earlier, thereby minimizing losses due to
gravity drag. Thus, the effective delta-v requirement for these vehicles are reduced.
However, liquid hydrogen does give clear advantages when the overall mass needs to be minimised; for example the Saturn V vehicle used it on the upper stages; this reduced weight meant that the dense-fuelled first stage could be made significantly smaller, saving quite a lot of money.