No navigation. I use the phone itself for that (Apple Maps), though when connected via USB it reduces music volume and gives its audio directions via the car stereo.
Did a little more fiddling with it this morning. It looks like the trick to make it work is to force-kill the Music app (double-home then swipe it away). The next time I try to connect after doing that it works, if not, Loading Error. So at least that's more convenient than a full power cycle, which I had thought was the necessary prerequisite.
I wouldn't count on Hyundai fixing this. For one, they probably didn't even know there was an issue until iOS11 came out so even if they jumped on it right away, how long before they have a fix included in a software revision? As you noted, they don't even officially support lightning cable, so if I accept an update I run the risk of losing existing functionality! A risk I'm not willing to take.
And to me, if this worked in iOSes 7-8-9-10 and broke at 11 with the connected device unchanged, that tells me that Apple mucked with the USB interface to legacy devices, which leads me to believe they made a change they didn't expect to be negatively impactful for anyone, and if enough people report issues with formerly working docks they'll correct whatever USB-interface change is breaking things for people (that's why I'm here - adding another voice to 'the new iOS broke a formerly working car dock connection' tally). I have far more faith in Apple fixing this than Hyundai.
Bluetooth play on this radio ( https://i.ytimg.com/vi/sZDsV3A4Lb8/hqdefault.jpg ) was *never* interactive for me on any device - music devices connected via USB showed track-artist-album-time information on that little monochrome screen and one could choose tracks/albums/artists/playlists via the dials and buttons, and could skip tracks with the in-wheel controls... but if a music device was connected via bluetooth the screen only showed "MP3 playback" and just played whatever audio the phone was feeding it with no car interface for track control (of course, since handsfree siri went to "Wake up on 'Hey Siri'" track skipping/restarting became, at least, doable in a moving car without touching the phone).