There are advances in the area of sight where technology can tap directly into the visual cortex of the brain.
Artificial Vision for the Blind - Brain Implant? Bionic Eye?
What blew me away was when they used a bad heart, stripped away all of its muscle leaving the cartilage behind to serve as a scaffold and stem cells grown from heart muscle was sprayed onto that scaffold creating a new, beating rat heart. I've heard of this scaffolding procedure before but not about the heart.
In the video that I posted before, Juan Enriquez speaks about growing organs using existing cells. Check this:
Juan Enriquez shares mindboggling science | Video on TED.com, [10:50-12:30].
We can probably use organs grown in a lab for blood transfusion, organ transplants, skin transplants, etc. It is more complex when it comes to the nervous system and hearing is a part of this.
I am not in biotechnology or medicine, but I think it works something like this.
People have lost hearing for different reasons, so you have to know the possibilities before attempting a solution. A cochlear implant uses a microphone and converts the sound to electric signals that the cells in the cochlear nerve understands. If the cells in the cochlear nerve are somewhat OK, you can connect an electrode to the cochlear nerve which in turn transmits the signals to the brain. No cochlear nerve, no cochlear implant.
The problem for people without a functional cochlear nerve would then be solved by growing cells in lab which can then be inserted into a person. But this is complicated. First, we do not have complete understanding of how to connect the cochlear nerve to the brain.
Second, if there is no cochlear nerve is person or the cells grow a cochlear nerve but are not functional for some reason (i.e. they cannot transmit electric signals) then you are stuck. In that case, you would have to use stem cells which can grow any organ. But stem cells are inherently complex (if they don't grow, then you don't get your organ, and if they grow too much, they are probably cancerous).