Your description of these terms is generally correct. On your next question, while FSD does enable car to make turns, stop at lights, etc. on city streets, driver attention is still required (via dashcam and steering wheel monitoring).
On your final point, the OTA is intended to make standard AutoPilot safer by enforcing more strict driver attention and perhaps restricting use on city streets (where it shouldn't be used). Importantly, standard AutoPilot can be enabled today on city streets but will not stop at lights / signs, etc. Therefore, poor driver behavior and inattention can lead to bad results.
Thank you. This is all very interesting. I also read the description of the various offerings here:
https://www.tesla.com/support/autopilot
So even basic Autopilot supposedly has "Autosteer" (per the linked material), but what Autosteer is seems to depend on whether you've got AP, Enhanced AP, or FSD?
It looks to me (correct me if I'm wrong) that the Autosteer with standard AP is basically just what we Ford folks would call "lane centering." If the MobileEye camera system can read the lane markers, it'll "steer" enough to keep you centered in the lane, but it isn't going to take turns, stop at signs, etc. Currently, my Mach E can use the lane centering and adaptive cruise control (now confusingly referred to as "Hands-ON BlueCruise") anywhere we want. City, highway, whatever. But we have an eye sensor that'll ping you if you look away from the road for more than 5 seconds (it works remarkably well), and a torque sensor that'll nag if it doesn't detect a hand on the wheel for 8 seconds. The torque sensor isn't perfect - it'll sometimes nag even if you do have a hand lightly on the wheel.
Enhanced AP looks like the car will basically drive itself on highways, including automatic lane changes, ramp to ramp, plus a few other party tricks (summon, etc.) This is slightly better than "Hands-Free BlueCruise," (the newest HFBC 1.3 will suggest lane changes and execute them on command, but doesn't do them automatically), but HFBC has the significant advantage of being truly hands-free. The torque sensor is deactivated on these divided highways and relies solely on the infrared eye sensor. It works well. Ford has proposed charging $800/yr for HFBC, but I don't think that price is going to stick. I have the ability to renew my free trial of HFBC for $600 total (plus tax, LOL) for a three-year term, which seems much more reasonable. Enhanced AP costs $99 a month?! Dayum.
Then with FSD, you get all the above, but the car drives itself on city streets (takes turns, stops at signs, etc.) For $199/mo a month. And you still technically have to keep your hands on the wheel. Plus there's a cabin cam which may not work so great in low light situations? Plus there's a strike system which can really eff with people based on false strikes?
So do I have all that right? And if I do, here's my next question... If Tesla significantly tightens up its torque sensor with this "recall" to be more in line with Ford's (that's my suspicion), nagging you after a few seconds of not detecting a hand... wouldn't that make the Enhanced AP and FSD offerings a lot less appealing? If you have to keep a hand on the wheel, what is the value? Or do you think Tesla might try to use the cabin cam to bypass the torque sensor (like HFBC)? Or maybe Tesla is only going to tighten things up on city streets, as some are speculating, but boy it seems like if you're going to require a torque sensor, period, you wouldn't want to differentiate between city and highway!
Update: I just saw
@drtimhill 's post above, which seems to comport with my understanding (I think LOL).