10 years ago, users could identify a link from underlined blue text or a highlighted blue border around pictures. We did so much visual progress since, and hover (especially in css) is good design and a good interface tool, in that it lets people know something might be clickable. For any user, hover means 'link', so i wouldn't start digging its grave anytime soon.
Do we really need to break something that works here (mouse+display) because it doesn't work there (touchescreen)? somehow it doesn't make a lot of sense, and probably calls for more thinking