The inevitable combination of adaptive cruise-control and lane-following functions into a system that takes over both lateral and longitudinal control is becoming reality. The videos below show both the Mercedes and Volvo versions of such systems.
The Mercedes video explicitly states the need for the driver to keep his/her hands on the wheel, which is one way of addressing the difficulties of taking a driver out and then back in the driving loop. Will be interesting to see if Volvo chooses the same approach.