Improve hooks.md UI documentation

- Add 'Key capabilities' section highlighting UI features
- Expand ctx.ui docs with custom component details
- Reference snake.ts example for custom UI

packages/coding-agent/docs/hooks.md

@@ -2,14 +2,21 @@
 
 Hooks are TypeScript modules that extend pi's behavior by subscribing to lifecycle events. They can intercept tool calls, prompt the user, modify results, inject messages, and more.
 
-**Example use cases:**
-- Block dangerous commands (permission gates for `rm -rf`, `sudo`)
-- Checkpoint code state (git stash at each turn, restore on branch)
-- Protect paths (block writes to `.env`, `node_modules/`)
-- Inject messages from external sources (file watchers, webhooks)
-- Custom slash commands and UI components
+**Key capabilities:**
+- **User interaction** - Hooks can prompt users via `ctx.ui` (select, confirm, input, notify)
+- **Custom UI components** - Full TUI components with keyboard input via `ctx.ui.custom()`
+- **Custom slash commands** - Register commands like `/mycommand` via `pi.registerCommand()`
+- **Event interception** - Block or modify tool calls, inject context, customize compaction
+- **Session persistence** - Store hook state that survives restarts via `pi.appendEntry()`
 
-See [examples/hooks/](../examples/hooks/) for working implementations.
+**Example use cases:**
+- Permission gates (confirm before `rm -rf`, `sudo`, etc.)
+- Git checkpointing (stash at each turn, restore on `/branch`)
+- Path protection (block writes to `.env`, `node_modules/`)
+- External integrations (file watchers, webhooks, CI triggers)
+- Interactive tools (games, wizards, custom dialogs)
+
+See [examples/hooks/](../examples/hooks/) for working implementations, including a [snake game](../examples/hooks/snake.ts) demonstrating custom UI.
 
 ## Quick Start
 
@@ -388,7 +395,9 @@ Every handler receives `ctx: HookContext`:
 
 ### ctx.ui
 
-UI methods for user interaction:
+UI methods for user interaction. Hooks can prompt users and even render custom TUI components.
+
+**Built-in dialogs:**
 
 ```typescript
 // Select from options
@@ -403,19 +412,31 @@ const ok = await ctx.ui.confirm("Delete?", "This cannot be undone");
 const name = await ctx.ui.input("Name:", "placeholder");
 // Returns string or undefined if cancelled
 
-// Notification
+// Notification (non-blocking)
 ctx.ui.notify("Done!", "info");  // "info" | "warning" | "error"
+```
 
-// Custom component with keyboard focus
+**Custom components:**
+
+For full control, render your own TUI component with keyboard focus:
+
+```typescript
 const handle = ctx.ui.custom(myComponent);
 // Returns { close: () => void, requestRender: () => void }
-// Component can implement handleInput(data: string) for keyboard
-// Call handle.close() when done
 ```
 
+Your component can:
+- Implement `handleInput(data: string)` to receive keyboard input
+- Implement `render(width: number): string[]` to render lines
+- Implement `invalidate()` to clear cached render
+- Call `handle.requestRender()` to trigger re-render
+- Call `handle.close()` when done to restore normal UI
+
+See [examples/hooks/snake.ts](../examples/hooks/snake.ts) for a complete example with game loop, keyboard handling, and state persistence.
+
 ### ctx.hasUI
 
-`false` in print mode (`-p`) and RPC mode. Always check before using `ctx.ui`:
+`false` in print mode (`-p`), JSON print mode, and RPC mode. Always check before using `ctx.ui`:
 
 ```typescript
 if (ctx.hasUI) {