Presumably HWI on github.com is to do with creating a hardware wallet interface with Bitcoin Core. Am I correct?
What stage is development at presently?
Will one be able to connect a hardware wallet to Bitcoin Core with this interface?
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Yes, you can connect an external signer to Bitcoin Core. You can either use HWI (Hardware Wallet Interface), which is developed by Bitcoin Core developers but currently considered experimental, or use a compatible script if one is provided by your hardware wallet vendor.
To use the external signer feature, start bitcoind with the parameter:
$ bitcoind -signer=<path/to/hwi.py>
Or if you use the Bitcoin Core GUI, you can fill in the "External signer script path" field in the "Wallet" tab.
Some relevant links: