They could disable autohover on expert as long as you are above 1000 feet AGL or something. Who cares if someone engages it at that altitude to answer the phone or take a piss?
But I agree it interferes too much at reducing sense of realism.
It's true we lack inner ear sensations, for obvious reasons, but I think the trick is to better use the visual cues we do get, even if more inconvenient than real life. The negatives of auto hover by far outweights the positives. Although not for ground level flight, when flying IFR you'll learn to completely shut off the signals from the inner ear, as they can be very faulty - and solely
rely on what your instruments tell you instead. At least as an option to turn off.
@Turin: There is nobody objecting that missions can't be harder on harder difficulties (although I don't think it will be used as much as you suggest). We're just saying that some "helper aids" should be completely disabled on harder difficulties. You can probably set lowest difficulty but choose to toggle off all the helpers.