Hover input on touch screens is cool tech but I’ve yet to see an implementation of it where it really added usability. More hidden UI just seems like more difficulty for average users.
More hidden UI in a car seems like the absolute worst place to use such a hardware feature. Drivers should have their eyes on the road, not staring at the screen while they try to get their finger just the right distance to make some UI element pop up.
Edit: the linked Microsoft demo is pretty cool, and could improve mobile devices, but is exactly what I was thinking should not be in a car control surface.