I think this is a little simplistic. Pumped hydro is very reliant on finding suitable geography which ultimately limits the potential capacity. I think it's more likely that grids of the future will rely on a variety of storage solutions (pumped hydro, consumer EVs, grid scale batteries etc.) and smarter load-shedding rather than any single solution being dominant.
Pumped hydro has been the cheapest by far and proven at scale far beyond any other solution including grid scale batteries, but only works in specific geographies and up to a fixed scale.
Grid scale batteries, pumped hydro, molten salts or other grid scale storage are all viable options provided TCO is cheaper than arbitrage that comes from price fluctuations.
This is no different than arbitrage in say commodity markets by taking delivery of the goods like say how U.S. government is using its strategic oil reserves these days.
https://scholar.google.co.uk/citations?view_op=view_citation...