^^^sushipup is spot on. Dishwashers today don’t need an air gap because they come with a “high loop hose”. I assume you are in California?

Yes, SF Bay Area... I've heard of this before... what would the suggested layout look like "with" (5 hole) vs "without" (4 hole)? I am installing the undermount SS sink (and its 32" wide) on a quartz counter top. Thanks!

I'm leaning towards a 3 hole - BTW... I'd just like to have the main Pre-Rinse in the center, with the Hot/Cold Filtered water on one side and the Disposal Button on the other side... Code requires the Air Gap and wife would like a soap dispenser... I think the 5 hole is waaay to busy for a modern look. But, I'd like to know available options/layouts for each....

I definitely suggest the 4-hole, and replace the air gap with the soap dispenser when the inspector leaves (if you are even getting it inspected).

Just regarding the air switch (which is the correct name for what you called the “disposal button”), it needs to be on the end so that it is farther from the faucet handle. Here is a thread you should read:

https://www.houzz.com/discussions/5791654/leaking-air-switch-for-disposal

Well... this is how we finally worked out the kitchen sink! The hot/cold water side tap is all filtered water.