How so? Yes, if you dammed up most valleys you could build a lot more capacity than humanity currently has, but that's because we don't really have that much. A factor of two or so might be well within range. But the total amount reasonably buildable simply isn't enough, except for some very local scopes where demand is low in both energy and in other use for the landscape that would be taken over by reservoirs. And that's before you start considering the geological realities required for actually building a dam, you don't just need the geometric shape of a valley, you need the bedrock to brace the dam against and the impermeability of the ground required to not have leakage wash out pathways for ever increasing leakage. Viable sites for pumped hydro are extremely rare and quite a few have actually been given up decades after building the dam, because the geology wasn't quite as cooperative as hoped.

The promise of deep site water head CAES is that you can just throw money at the problem (excavation) and get as much capacity as you want to buy. The price per capacity is higher than that of a low hanging fruit pumped hydro site, but many of those buildable have already been built.