It's good exercise, and an hour less spent in front of a TV. If his bag's heavy, it'll build up some muscle. Not seeing a problem here!
I agree with other posters, you're enabling his behaviour. It's time for him to do his own laundry, stop the allowance, stop the lifts. I would lay off the haircut though - if he wants his hair long, his choice. Hair is a very personal thing.
I would very much encourage him into part-time job. DS started his aged 16, and I could see his self-confidence blossom, became more outgoing. He liked the money of course, but he also liked the teamwork and the company of his colleagues. He really benefitted from that job.
Teaching him how to do his own laundry is a necessity. He won't always be 17 living with his dad, it's part of preparing him for living as an independent adult.
I started teaching DS when he was about 16/17 I think (along with basic kitchen skills and cooking). And keep making the point that when "he does the dishes every other day and vacuum the lounge or clean the bathroom", that this is not you using him as a skivvy, it is him pulling his weight in a multi-person household and training him for adulthood. Seriously, I told DS at about that age that as a parent, it was not my job to raise a CHILD, it was my job to raise an ADULT.
"He is own is phone all the time with ear buds. Even at the meal table."
New house rule. No phones and no ear buds at the table. Rule applies to everyone, sons and dad alike. He can restart when he's finished his meal, but not during.
The driving licence - are you in the UK? If so, I've noticed quite a few of DS's contemporaries are also uninterested in driving. The cost of running a car is so high these days, the insurance for young people is ruinous. Many are seeing a licence as surplus to requirements, and again, expensive to get. Whilst I generally view being able to drive as a life skill, I can understand this generation opting out (expense, environmental concerns, availability of Ubers).