OK, so I went out to my M3 and got sentry enabled and watched as I positioned my arms/hands in various positions. I was wearing a loose pile jacket because it's cold in Texas. The first thing I noticed is that there is almost no view of my left arm. The camera FOV is not wide enough to capture more than a sliver. If I rest my elbow on the door rest, there is zero difference in the video whether my hand is on my knee, or holding the wheel anywhere from seven to nine o'clock position. There is a very slight change if I hold the wheel at ten o'clock, but the bulkiness of the jacket makes it impossible to discern anything about the difference.
The right arm is better in view, however, in all cases, the lower part of the image is blocked by the rear view mirror. Still, the image of the right arm is exactly the same whether my hand is resting on my knee or holding the wheel anywhere from three to five o'clock.
Had my arms been bare, it might be easier to discern where the right arm is going, but not the left. But it doesn't matter because any use of the camera to determine hand position must work for all types of persons wearing all types of clothing. The only alternative would be for the car to direct people to remove clothing from their upper body when arm position could not be determined. This might not be well received by some drivers!