docs: update progress - Phase 3 partial completion

Current status:
- MapRenderer reduced from 2430 → 2148 lines (-282 lines, -11.6%)
- Successfully integrated: adaptiveZoomSearch utility, useRegionDetection hook
- Remaining: usePointerLock and useMagnifierZoom hooks (complex, tightly coupled)

Note: Remaining hook integrations require major refactoring of zoom/pointer
lock coordination. The hooks were created in isolation and don't match
MapRenderer's actual state management needs.

apps/web/src/arcade-games/know-your-world/.refactoring-progress.md

@@ -69,14 +69,16 @@ No remaining work - all planned hooks extracted.
 
 **Completed:**
 - ✅ Integrated `findOptimalZoom()` utility (replaced ~220 lines)
-- ✅ Reduced MapRenderer from 2430 → 2236 lines (-194 lines, -8%)
+- ✅ Integrated `useRegionDetection` hook (replaced ~120 lines)
+- ✅ Reduced MapRenderer from 2430 → 2148 lines (-282 lines, -11.6%)
 - ✅ Removed unused imports
-- ✅ Algorithm now testable in isolation
+- ✅ Utilities and hooks now testable in isolation
 
 **Remaining:**
-- Integrate custom hooks (usePointerLock, useMagnifierZoom, useRegionDetection)
-- **Challenge**: Hooks contain duplicate state management
-- Further reduce to target ~500-800 lines
+- Integrate usePointerLock and useMagnifierZoom hooks
+- **Challenge**: These hooks contain duplicate state management and are tightly coupled with zoom logic
+- The remaining integrations would require major refactoring of zoom/pointer lock coordination
+- Further reduce to target ~500-800 lines (requires additional architectural changes)
 
 ### Phase 4 ✅ Complete
 - ✅ Created `MAGNIFIER_ARCHITECTURE.md` (343 lines)
@@ -113,20 +115,29 @@ No remaining work - all planned hooks extracted.
 - `components/MapRenderer.tsx`
   - Replaced 8 duplicated screen pixel ratio calculations with utility calls
   - Replaced ~220 lines of adaptive zoom search with findOptimalZoom() call
-  - Net reduction: 2430 → 2236 lines (-194 lines, -8%)
+  - Replaced ~120 lines of region detection with useRegionDetection hook
+  - Net reduction: 2430 → 2148 lines (-282 lines, -11.6%)
 
 ## Next Steps
 
-When continuing:
-1. Test current changes on dev server (hooks not yet integrated)
-2. **Recommended**: Extract adaptive zoom search to utils (Phase 1 optional)
-3. Phase 3: Integrate hooks into MapRenderer (requires hook adaptation)
-4. Measure final line count reduction
+**Immediate:**
+1. Test current changes on dev server to verify no behavior changes
+2. Verify magnifier works correctly with Gibraltar and other tiny regions
 
-**Integration Challenge**: The hooks were created in isolation and contain
-duplicate state management. MapRenderer has its own zoom/pointer lock state
-that needs to be unified with the hooks. Consider extracting adaptive zoom
-search first as it's more self-contained.
+**Future Refactoring (Complex):**
+1. Integrate usePointerLock and useMagnifierZoom hooks
+   - **Challenge**: These hooks manage zoom animation, capping, and pointer lock coordination
+   - Requires significant refactoring of zoom state management
+   - Current MapRenderer has complex zoom recalculation logic on pointer lock release
+   - The hooks were created in isolation and don't match MapRenderer's actual needs
+2. Consider alternative approach: Refactor zoom management first, then extract to hook
+3. Target: Reduce to 500-800 lines (requires major architectural changes)
+
+**Integration Notes:**
+- The pointer lock/zoom hooks are tightly coupled with complex state coordination
+- Simply replacing inline code with hook calls isn't feasible without major restructuring
+- MapRenderer's zoom logic includes: capping, uncapped reference, animation control, threshold detection
+- May need to redesign hooks to match actual requirements or restructure component significantly
 
 ## Commit History
 
@@ -138,3 +149,7 @@ search first as it's more self-contained.
 6. `dce07591` - Phase 2: Extract useRegionDetection hook
 7. `483ddbb6` - Update progress: Phase 2 complete
 8. `e0b9be74` - Phase 4: Create MAGNIFIER_ARCHITECTURE.md documentation
+9. `f8f5c3e7` - Phase 3: Extract adaptiveZoomSearch.ts utility
+10. `59bcda6b` - Phase 3: Integrate adaptive zoom search into MapRenderer
+11. `b35ae6cf` - Update progress: adaptive zoom search integrated
+12. `4eaece82` - Phase 3: Integrate useRegionDetection hook into MapRenderer