The original intention was to have the top left corner of the cursor light up on clickable links. This is a common design we use at Hillcrest Labs for our UIs - the cursor for the Kodak Theatre HD Player is an example.
The reason the hover state never made it in is due to the way we ultimately had to implement it. Not to make excuses, but we had decided to avoid compiling a custom XULRunner for Kylo to avoid the logistics of hosting the code. I’m just started looking in to biting the bullet on this one this past Tuesday. And actually, if this works for all cases (may have some trouble with the cursor over flash/quicktime/wmp/etc. content), then it would actually be easier to provide a custom cursor for the text entry case as well. I’ll keep you posted.
Meanwhile… if either of you have any programming experience or know of anyone that might like to help out, the Kylo source is available on github and I could use the help