Ok so my dealer has my replacement steering wheel on order but could not verify if the replacements' leather was a better quality.
So I called Hyundai customer service and opened a case.... surprisingly they told me there are no reported customer complaints regarding "peeling steering wheels" so as a result any replacement wheels we may get due to a dealership claim will most likely be the same quality thus the potential for the replacement peeling again in the future.
The Hyundai C/S rep who I spoke with mentioned that he used to work for a leather company and knows that the quality and thickness of the skins can vary from batch to batch so it is possible that the quality of each steering wheel wrap can also vary. I just hope my replacement wheel is one of those "better quality" skins.
In any case, he also mentioned that Hyundai is very serious regarding the tracking of trends and addressing of trended complaints so if you are having this issue....PLEASE call Hyundai C/S and complain about the peeling leather so they can address it as a real issue!! Hyundai C/S # 800-633-5151