The risk with hydraulic system is: the great potential for leaks. We get that in our braking systems and ATs alone! Here's a radical idea for fuel economy when it applies to SUVs: don't build so many of them! There are more of these gluttonous peacockmobiles than real cars, haven't you noticed? I did a check at a Ford lot once, and they had more SUVs than any other vehicle type COMBINED!!!

I can only hope that AWD sportwagon-type crossovers like the Matrix/Vibe bite REAL hard into SUV sales... oh, heck, I've REALLY gone off the subject here!

Sorry. I tend to cimb on my SUV soapbox every chance I can get.
Back to the matter at hand: CVTs are great for gas/electric hybrids and tiny econoboxes like the old Subaru Justy. A hydraulic hybrid engine is asking for more trouble than it's worth. When they solve AT leaks, fluid breakdown, and burnouts, fine. But until then...