Your worry about the driver paying too much attention to the screen seems unwarranted, as the screen shows exactly the same view as through the window (albeit on a smaller scale). So if someone runs in front of the car while you are looking at the screen, you will see it on the screen immediately, unlike the traditional map-based GPS systems, that do take attention away from the "real world".
That said, a HUD-like presentation does sound good. But I doubt we will get drivers to wear helmets with visors while they drive, so you would need to embed a transparent display into the windscreen and adjust the positioning of the pictures to the position of the driver's head.
But it might be better to take the driver completely out of the equation. If you have GPS and a camera, you could let a computer do all the driving while avoiding obstacles, obeying speed limits, and so on.