How would you name a system which can do everything a Level 5 system can, but with Level 2/3 supervision? A name, which a PR team would choose without the missleading stuff as you are saying.
FSD cannot “do everything a Level 5 system can.” It can’t even match Waymo’s Level 4 capabilities, because it periodically requires human intervention.
But granting your premise, you’d say it’s a Level 2 or 3 system with some advanced capabilities. (Mercedes has a lane-keeping and -switching product. They’re not constantly losing court cases.)
Not urgently. FSD has time-sensitive intervention requirements. Waymo’s time sensitivities are driven by passenger comfort, not safety.