Only show drag handle on hovered surface

macos/Sources/Ghostty/Surface View/SurfaceGrabHandle.swift

@@ -3,11 +3,15 @@ import SwiftUI
 extension Ghostty {
     /// A grab handle overlay at the top of the surface for dragging the window.
     struct SurfaceGrabHandle: View {
-        let surfaceView: SurfaceView
+        @ObservedObject var surfaceView: SurfaceView
 
         @State private var isHovering: Bool = false
         @State private var isDragging: Bool = false
 
+        private var ellipsisVisible: Bool {
+            surfaceView.mouseOverSurface && surfaceView.cursorVisible
+        }
+
         var body: some View {
             ZStack {
                 SurfaceDragSource(
@@ -18,11 +22,14 @@ extension Ghostty {
                 .frame(width: 80, height: 12)
                 .contentShape(Rectangle())
 
-                Image(systemName: "ellipsis")
-                    .font(.system(size: 10, weight: .semibold))
-                    .foregroundColor(.primary.opacity(isHovering ? 0.8 : 0.3))
-                    .offset(y: -2)
-                    .allowsHitTesting(false)
+                if ellipsisVisible {
+                    Image(systemName: "ellipsis")
+                        .font(.system(size: 10, weight: .semibold))
+                        .foregroundColor(.primary.opacity(isHovering ? 0.8 : 0.3))
+                        .offset(y: -2)
+                        .allowsHitTesting(false)
+                        .transition(.opacity)
+                }
             }
             .frame(maxWidth: .infinity, maxHeight: .infinity, alignment: .top)
         }

macos/Sources/Ghostty/Surface View/SurfaceView_AppKit.swift

@@ -116,6 +116,12 @@ extension Ghostty {
         // Whether the pointer should be visible or not
         @Published private(set) var pointerStyle: CursorStyle = .horizontalText
 
+        // Whether the mouse is currently over this surface
+        @Published private(set) var mouseOverSurface: Bool = false
+
+        // Whether the cursor is currently visible (not hidden by typing, etc.)
+        @Published private(set) var cursorVisible: Bool = true
+
         /// The configuration derived from the Ghostty config so we don't need to rely on references.
         @Published private(set) var derivedConfig: DerivedConfig
 
@@ -533,6 +539,7 @@ extension Ghostty {
         }
 
         func setCursorVisibility(_ visible: Bool) {
+            cursorVisible = visible
             // Technically this action could be called anytime we want to
             // change the mouse visibility but at the time of writing this
             // mouse-hide-while-typing is the only use case so this is the
@@ -910,6 +917,7 @@ extension Ghostty {
         }
 
         override func mouseEntered(with event: NSEvent) {
+            mouseOverSurface = true
             super.mouseEntered(with: event)
 
             guard let surfaceModel else { return }
@@ -928,6 +936,7 @@ extension Ghostty {
         }
 
         override func mouseExited(with event: NSEvent) {
+            mouseOverSurface = false
             guard let surfaceModel else { return }
 
             // If the mouse is being dragged then we don't have to emit