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I have looked into using hydraulics for a couple projects, primarily for an outboard motor for my ski boat, so I can ditch the 2-stroke and use an inboard 4-stroke engine. Another one is to use hydraulic wheel motors as a way to put motors at the wheels without all the unsprung weight of electric motors.
What I've been told, and come to agree with, is that the efficiency is not very good for hydraulics. All the components are very heavy to handle the high pressure. The pump to create the high pressure generates a lot of heat in the fluid that must be removed.
Electric is just a lot more efficient. For a hybrid like the Prius that just uses battery power to accelerate, you can use a very small battery that is not very expensive. Frankly, the Prius is a very efficient and well-designed approach for a hybrid, I don't think any DIY approach can surpass it.
You can replace the NiMH battery with Lithium to reduce its weight, and use the drivetrain in a smaller lighter car for 2-people rather than 4.
You can purchase a wrecked Prius for about $3-5K, take the drivetrain, and put it in a Geo Metro, or maybe even a smaller car, and for under $10k (and a LOT of your labor) you could have a higher mileage hybrid. That would be my suggestion. Otherwise, a used Prius for $10k will get you 60mpg if driven like an old lady.
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