Yes. There's decades of research on this. Some level of automation probably does help. It's not like people don't zone out, especially for freeway driving, even when they're driving with totally manual systems. And, of course, people text, fiddle with radios, etc. But too much automation that's not totally for backup may well be harmful.
It's still illegal to text or otherwise use a handheld phone while driving, even with the automation that we have on some cars now. I imagine this will be the case until the automation is so complete that there is no longer a steering wheel.
I still see people driving around while holding phones to their ears. There needs to be a change to make it socially unacceptable to do this. You only need to be caught twice to lose your license.
It's also illegal to drive distracted. While it's technically legal to use a hands-free telephone, if you could be described as "distracted" because of it, it's illegal.
