TJR,
I agree with most of what you said, however I think that during severe storms that takes down trees and power lines, it can often take longer to restore power.
In cases of hurricanes and tropical storms, the power usually goes out long before the basement flooding starts. Backup batteries can work good as long as they owner has monitored the condition of the batteries...which often does not happen.
Also, your scenario assumes that the owner is home to turn on a generator? What happens if a storm hits when you are out of town, and/or you are not allowed to return to your home for days or even weeks?
Of course those things are rare and would only effect a small percentage of the population. but if you are going to put out money for a sump pump back up, the water powered sump pump would be the most reliable for a long power outage, but the cost of installation has to be considered. The further the sump pump is from the water supply line, the more expensive the installation will be.
If I lived in an area where these kinds of storms occurred with some regularity, I would want the most reliable back up system. If I already had a battery backup, I would keep it, but if I did not have any backup, I would seriously consider the water powered sump pump.
It might be good to see if your insurance company allowed for any discounts for a sump pump backup, and if there was any difference in between the discount for a battery backup vs the water powered backup?
...Rich