I certainly agree with #2 - not only are the batteries lasting 10 years, but the Toyota and Honda hybrids have proven themselves to be extremely reliable vehicles (just see Consumer Reports).

But it's #3 that holds me back (and #1). Hybrids just cost a crapload more than their non-hybrid counterparts.

There are 2 ways the price goes up - the straight up additional cost of the hybrid vs the non-hyrid model, and the requirement that you buy the most expensive version of the car to get a hybrid.

Take the Honda Civic Hybrid, for example. Here's the cost of the different grades of the Civic (with an automatic transmission, in St Paul MN), according to CarsDirect.com:
Civic Hybrid $23,235
Civic Ex $19,439 $3,796 20%
Civic Lx $17,834 $5,401 30%
Civic Dx $16,045 $7,190 45%

The hybrid costs $3,796 more than the non-hybrid Ex. But it also costs $5,401 more than the Lx. And $7,190 more than the Dx. So assuming you would otherwise buy the Civic Lx you pay 30% more for the hybrid version.

I know a number of friends who would love to buy a hybrid to save money on gas, help the environment, and own a cool car (in that order). But there's no way they can justify spending $5,401 dollars more for that. For that kind of money they're 25% closer to buying a second car.

Here's the breakdown for the Camry (w Automatic Transmission and ESC):
Camry Hybrid $24,860
Camry SE $22,006 $2,854 13%
Camry LE $20,550 $4,310 21%
Camry CE $19,612 $5,248 27%

Prius/Corolla (Including Automatic Transmission, Side Air Bags, Anti-Lock brakes, and Vehicle Stability Control)
Prius $21,460
Corolla LE $16,567 $4,893 30%
Corolla S $16,414 $5,046 31%
Corolla CE $15,193 $6,267 41%

If you're not already looking to buy the top end model of the car you want, the hybrid is (unfortunately) significantly more expensive.