Stan,
I agree with your comments about dams. But one must remember that not all hydro is from dammed lakes, resevoirs or what have you. Some can be 'run of river' - obviously a very low head there! Some can be simple penstock from the supply before a waterfall - some serious power from the high flow high head pelton wheels. Of course, like you indicated, removal of forestation can cause serious soil erosion problems up-stream and some areas are more prone to heavily laden waters with suspended sediment at certain times of the year.
A lot of the concrete used in modern large abuttments is a fly-ash (waste material) derived product - less cracking due to thermal heat produced while curing per unit time. But never mind the structure of the dam - consider the change to the environment as well, ecological changes. They may have put in a Severn barrage (tidal system, not 'hydro' in it's accepted sense) many years ago (when it was a cheaper project, relatively) but the problems were, among others, how the backwaters would build up with raw sewage effluent, which was still being disposed directly into the river, and the associated hazards.
Hydro is still renewable. Can make some more tomorrow and the days after with no further 'energy' cost. Nearly all installations hydro, wind, solar thermal or PV etc. have a capital cost.
Regards, RAB