To be fair, that test is almost entirely on single lane country roads or roads with gaps/breaks in the lane marker. We saw a smooth braking to a stopped car, and the corner tracking seems to be without the piecewise jerking motion.
We need to see more tests. But there's nothing earth shattering about lane recognition or handling local road conditions, that much is clear. But still, in terms of freeway performance, I'm far more annoyed right now at AP2's jerky curve steering and flat out losing track of sharper curves. There's very little data in the video with regards to how much this changed in the new update.