Whereas LOX+Kerosene has a Specific Impulse (crudely the amount of 'go' you get from a pound of propellent) of about 340s, LOX+Hydrogen engines have an Isp of about 450. That's really a huge increase in terms of what you can launch with a given size of rocket.
Tom Mueller, the head of propulsion at SpaceX, previously worked for TRW (the company that did the US's ICBMs in the 50s) and while there he worked on a LOX+Hydrogen engine, the TR106 ( http://en.wikipedia.org/wiki/TR-106 ), which was a beast.
It's harder to work with - both propellants are very cryogenic - but any rocket engine designer will be very aware that LOX+Hydrogen is hovering at the top of the evolutionary ladder looking mighty attractive for those that have the resources to take it on - a position Space X find itself in as they become more mature and heavyweight. They're already looking at it for their replacement Upper stage vacuum engine for Falcon 9 - the Raptor ( http://en.wikipedia.org/wiki/Raptor_(rocket_stage) ).
Also, almost any Mars mission would involve a lot of heavy lifting into low earth orbit to construct a vehicle that would transport people there and back. A space vehicle that can support several people for say 2 years, and move itself to and from Mars, is going to by way bigger than anything that can be launched by a single rocket all at once. A big heavy-lifter whose engines have a much improved Isp (which rather relaxes the expensive mass saving measures you need in the rest of the rocket to launch a given payload, or alternatively lets you launch a much heavier payload for the same vehicle) is consistant with a mars road map.
I doubt they would undertake something like this just for Mars - developing rocket engines is hecka expensive. SpaceX got started by inheriting most of the cancelled FastTrac project from Nasa ( http://en.wikipedia.org/wiki/Fastrac_(engine) ) and indeed still outsource their turbopumps (the hardest bit of an engine) to Barber Nichols, who did the design for Fastrac. That was a great move on their part - starting with a blank sheet would have been madly expensive and very slow - a working baseline engine design is a very high-dimensional optimisation problem, before you even get to cutting metal. My point is, if they're now starting clean-sheet engine design, I'm sure they must have in mind some way for it to pay for itself because it's a hugely costly business.
We live in interesting times!