Basically i believe there is 2 ideas here. One is to grove hair cells and then transplant them to the inner-ear. The problem here is as mentioned to keep them alive and that it´s also known that there is different hair cells for different frequencies. It´s most likely a mess to get it all right.
The main approach right now it that they know that the supporting cells in the inner ear a stem cell like. They are now trying to trigger them do divide into hair cells. That could possibly happen in to ways. A seam cells is transforming direct to a hair cell or to trigger it to divide to a new supporting cell and a hair cells. This is pretty much how birds is doing it. This is most likely the best approach and would possibly solve a lot of the issues compared to transplantation.
Sometime in week 15 the fetus develops the hearing. What we know is at that time something is triggering hair cells growth and something is turning it of. Possibly a lot of answers could be found here. I do not know exactly but research around fetus i possible not the easiest and holds a lot of ideological aspekts.
As a side not I know that some leading researchers are quite sure that hair cells in humans actually grov but in a very very solv tempo. So slow that it is hard to prove but they have high resolution photos that actually indicates this. if it happens it´s likely in the lower frequencies. The alos believe that it sounds unlikely that all the hair cells in a 100 year old man could be from fetus/birth. Some type of regeneration must take place during that 100 years.
Knowing all this and assuming it´s about right there must be a way to trigger this process and speed it up so it makes a difference. The first big milestone is to get this supporting cell in a adult to divide into a hair cell. That would be a gigant step forward and possibly also a Nobel Price achievement.
Lets keep our finger crossed for the 2 big initiatives for this to happened.
http://www.otostem.org/
http://hearinghealthfoundation.org/hearing_restoration_project