It could be confusing to do this. Cause the text shown in the place of closed fold could differ from the actual text on that line And vim.api.nvim_win_set_cursor() sets the cursor position on the actual line not the shown text.
It's a pity if it doesn't get implemented - it would be very useful for files where the majority of lines are folded.
For example, I work with org files where all headlines are folded so the whole buffer is nothing but folded lines. Then when you run hop you get the following results: