I don't think that's necessarily true. There are plenty of people in the AV space that routinely drive significantly better than this and are already doing completely driverless service in some geofences.

The problem with Tesla's approach has always been that Elon wanted to sell it before he actually knew anything about how to solve it. It's lead to series of compounding errors in Tesla's approach to AVs.

The vehicle's sensor suite is woefully inadequate and its compute (yes, even with the fancy Tesla chip) is woefully underpowered... all because Elon never really pushed to figure out where the boundary of the problem was. They started with lane-keeping on highways where everything is easy and pre-sold a "full self-driving" software update with absolutely no roadmap to get there.

To overcome the poor sensor suite and anemic compute, they've boxed themselves into having to invent AGI to solve the problem. Everyone else in the space has happily chosen to spend more on sensors and compute to make the problem computationally tractable, because those things will easily get cheaper over time.

I'm fairly convinced that if Tesla wants to ship true FSD within the next decade, the necessary sensor and compute retrofit would nearly bankrupt the company. The only way out is likely to slowly move the goal posts within the legalese to make FSD just a fancy Level 2 driver assist and claim that's always what it was meant to be.