That's almost correct. I generally agree with hover == focus as a Window Manager level thing, but for document inputs within an application I still prefer required user interaction to set the focus location. E.G. a click, a tab, just move the line forward.

The correct context model is to not select an element for scrolling until it has been made the active element, and that UI element SHOULD have some sort of embellishment to make it obvious that's the focus.