Hi, this is wear and tear, if one does not protect and maintain leather interior. A 2007 model car should not disintegrate so badly, but I am guessing the interior was never protected and/or parked for long durations in direct sun and hot climate. I have seen similar damage to interiors in cars baked in direct sun for extended periods in Saudi Arabia.
The way forward would be to rip the current leather seats and start afresh. Try and find close match in (synthetic) leather. I have seen this done a lot. They will need to pull the seats out, and rip the old cloth. Stitch the new one in place.
The same can be done with the steering wheel and gear knob. However, if possible, I would recommend you to find used steering wheel and gear knob in better condition and swap them in.
On a side note, it would be sensible to tackle these issues, after COVID-19 settles down.