We have changed (and are changing) the behaviour of equality rewriting based on [feature-requests:#371], [bugs:#818] and [feature-requests:#401].
The reasoners that rewrite predicate equivalence share most of their implementation with the reasoners that rewrite expression equality. Therefore, we could easily apply the same changes to equivalence rewriting and it would make sense for all these reasoners to have a similar behaviour regarding hypothesis hiding/deselection.