Of course studies show that hands free doesn't stop the distraction factor. Just talking to someone in the car is distracting. Some studies indicate that talking on a hands free device is equivalent to driving drunk.
If talking on a hands free device is like driving drunk, then holding a device and texting must be like a drunk passed out at the wheel going down the road.
Basically everything is distracting to a certain degree unless you're alone in the car and focusing like a fighter pilot in a dog fight while driving. I doubt they will ever outlaw talking to a passenger in a car, or using a hands free phone (which is essentially like talking to a passenger) while driving.
I think almost everyone is distracted while driving these days. Probably 8 times out of 10 when I'm following someone they can't keep the car from hitting the shoulder or the center lane dividing line, which means they really are drunk or they are distracted enough to not keep the car in their lane. It's pretty sad that people are literally becoming zombies behind the wheel of a potentially deadly instrument.