I had a chance to chat with a Mercedes engineer today. Let's say that this is going to change in the next 4 months.
Speaking to an engineer doesn't guarantee something is going to happen soon. And, even if it does, it will apply only to new cars, and possibly only the more expensive versions of the new cars. Not that they will, but tesla could likely surpass whatever Mercedes comes up with, and apply it to every auto pilot enabled car. Maybe if Mercedes allows hands free driving and tesla wouldn't be the only one doing it anymore, tesla lawyers will finally ease up a bit.