The Hindenburg tragedy was caused by a build-up of static electricity, not that I'd expect you to know that.
Like any disaster of this magnitude, several causes came together to line up. There is no single cause.
Static electricity in the air was one factor. As the ship was landing, that static electricity somehow jumped the gap to ground by going through the balloon rather than the grounding cable (which had not yet touched the ground). The discharge probably went through the balloon to the landing tower.
Another was that the bag was built as a frame balloon, and protected using butyrate dope (very flammable) mixed with aluminum powder (very good protection again UV, but extremely flammable), then filled with hydrogen.
The actual point of ignition is unknown. One theory (supported by video of the event) was that the ship crashed into the tower (not particularly fast, but enough to damage the balloon envelope). As the ship was not yet grounded, the discharge probably went through the hydrogen gas setting it off. There is no proof of this, however. It is simply one of several theories. It has good supporting evidence though.
When the balloon burst open from the burning hydrogen, most of that fire went up, along with the hydrogen. It did, however, set the fabric treated with butyrate dope and aluminum coating on fire. That was most of the fire as the ship crashed to the ground (killing everyone beneath it, including those in the gondola).
The spectacular nature of the fire put people off from traveling by Zeppelin, despite it's sedate and elegant nature of travel. The airplane became the norm of travel by air as aircraft advanced to the point of providing airline use due to it's higher speed and freedom from these types of hazards. After that, it was all over for the Zeppelin.
Blimps are still used, of course, but they are usually filled with helium now (it wasn't practically available during the days of the Zeppelin), a much more expensive gas but it at least is not flammable. It does have a much bigger problem with leakage from the envelope, however. Such blimps are used for advertising mostly. Landing these smaller craft still requires a significant crew, but the landing procedure is less cumbersome.
A bag (as we pilots tend to call them) are slow in the airport pattern, so they have their own approach path separate from airplanes. They sometimes use helicopter approach paths but often they have their own specific path they follow (for airports that base these things).
The balloon that was used for the Chinese spy balloon was probably filled with helium instead of hydrogen. Hitting a hydrogen balloon with a missile would've been more spectacular.
Some pyro types will fill a small balloon (or weather balloon) with hydrogen, tie a string to it, light the string, and release the balloon. It makes a nice fireball flash in the sky and a bit of a popping sound when it goes. Some attach a small salute to the base of the balloon so the pop is louder.