On a 2023 Model S I test drove a few months ago, probably summer or late spring build, the difference between suspension settings was certainly real, especially swapping directly between Comfort and Sport.
I will say it was more subtle than the range allowed by other adjustable dampers I've experienced, but after reflecting on it, I think that's overall a good thing and Tesla engineers probably made a deliberate decision there.
Reason being, there is only so much firmness or softness that actually makes sense for a given application and spring rate. I guess the air spring rates probably change a little with height but changing height has other huge effects, and is slow, so it's not useful in any way for supporting extra soft or extra firm damping active damping.
I'll compare with a few other cars I've driven recently with adjustable dampers.
My 2021 M3P on aftermarket Redwood Öhlins DFV sport coilovers: The adjustment range on these Öhlins feels very wide, even just 1/3 stiff to 2/3 stiff is a huge dramatic difference. I can't imagine ever wanting the full range of adjustment on a single set of springs though. The wide range probably helps for swapping to somewhat firmer or softer springs without needing a revalve, which is a useful feature for an aftermarket suspension, but obviously Tesla has no reason to care about that with Model S factory air suspension.
Rivian R1T: The sport setting is super obviously different..and felt like sh*t. Way too firm on the damping. In the sport mode it seemed to bounce off every little imperfection, absorbing nothing, especially for a vehicle with such huge suspension travel and tires. Bad for handling and even worse for ride quality. So yeah, the R1T allowed a wider range of damping adjustment...but was worse for it. (Its standard/comfort mode was just fine thankfully.)
Audi RS5 Sportback: The RS5 damping adjustment range felt larger than the Palladium, but it also felt too underdampened in its softest comfort mode, and too overdampened for the street in its firmest sporty mode. Nothing so extreme or bad as the R1T sport mode though. The RS5 did have an in-between setting or two that felt very nice for the kind of car it is, so no real problem, but again I'm not sure the extra adjustment range over a Palladium is really worthwhile.
Ford Mach-E GT Performance Edition (magneride): This was a few years ago so my memory of it is getting fuzzy, but I was pretty impressed with its overall suspension tuning at the time, for what the vehicle is. The damping overall felt good and appropriate in all the modes I tried, not excessively stiff or excessively soft.
This is just my 2c based on my preferences, and based on driving a single Palladium Model S on a single software version. I'm not trying to deny anyone else's experience with these cars.
