The way I do it, is to simply plug my keyboard and mouse into an OTG adapter, for reference. I prop my phone up with my headphones or, when I want to use my headphones, a charging brick, and put it on top of my lunch container.
So a USB hub with HDMI output will not fully work, then?
Not necessarily. It just means that the hub(? adapter?) needs to negotiate DisplayPort altmode over USB-C with the video source (the Librem 5) and convert it to HDMI before shoving it out the HDMI port.
It is probably still fair to say that it won’t work with all of them. There are bound to be combinations of adapter and monitor (and Librem 5 hardware and software) that just don’t work or don’t work fully.
So if you don’t already own an adapter with HDMI output then you are looking for one that expects DisplayPort altmode on the USB-C side.
Which is most of them. I haven’t stumbled upon one that expects HDMI alt-mode yet. Plus if a hub allows you to have display output and USB ports operational at the same time, you can be sure it’s DisplayPort alt-mode since HDMI alt-mode doesn’t allow you to do that.
Yes, DisplayPort altmode is the defacto standard with docking stations. The thing to be careful about is getting a USB-C docking station.