It's pretty obvious that virtually all "improvements" to AP1 since release have been Tesla trying to backpedal and cover their behinds at the expense of removing functionality.
Up until recently I had managed to use some hacks on my cars to completely disable all of the arbitrary restrictions placed on autopilot (the 5 MPH rule, and any hands-on requirement). I recently ended up selling my P85D and getting an X P90D with newer firmware. Unfortunately, Tesla has patched those hacks directly on the DAS module and I haven't had time to come up with an alternative solution to make the system more usable again. I've been able to keep the wife's P85 on an older firmware version where I can still disable the restrictions.
My point with the above isn't to brag about this, but it is that I've driven tens of thousands of miles using autopilot with the restrictions and "safety improvements" all
completely disabled and have done so with
zero incidents. With mostly normal attention paid to the road and understanding of how the system actually works I find that it was a very pleasant and very safe driving experience. As noted by
@AWDtsla above, keeping a hand on the wheel or occasionally needing to needlessly tug the wheel does nothing to improve safety. The only thing that can make AP1 safely usable is diligence of the driver. I would never keep a hand on the wheel while using AP, but I would take over any time the system was doing or was about to do something that I as the driver wouldn't have normally done. It's just common sense to me. If, for example, AP looks like it's driving closer to the adjacent lane than I would normally have done, I just take over. Simple. I don't need the car to tell me when the car is about to do something stupid. In fact, with the hands-on restriction disabled the car would never even show the "take over immediately" warning under any circumstance. It would drive on indefinitely regardless of the situation, obviously placing the responsibility of driving on, you know, the driver.
(Edit: As a bit of a technical detail, having a hand on the wheel while autopilot is engaged provides the driver with no more control over the vehicle than with no hands on the wheel. While AP is engaged, the EPAS module holds the steering rack where the autopilot system commands it to, and input front the driver between no-input-torque and almost-enough-torque-to-disengage-AP has no effect on the actual wheels. The system measures the torque differential on the steering rack vs the angle commanded by AP to determine if a hand is on the wheel. Essentially, you're just twisting the steering column ever so slightly but having no actual effect on the steering until AP disengages. It is the illusion of control.)
To operate AP1 safely, the driver needs to know to pay attention, know the limitations of the system, and have a basic understanding of how the system actually works. Do this, and all is well. The biggest problem with some of the latest "improvements" is that they are unpredictable and undocumented. When you don't understand how the system will behave in a particular situation it creates a hazard. Believe it or not, I'm perfectly fine with Tesla including as many safety improvements to autopilot as they like, even ones that do ridiculous things like disobeying a driver's set speed.
HOWEVER, as long as they insist that the driver is liable for the actions of the vehicle regardless of whether or not autopilot is in use (which is perfectly fine, by the way) then they need to include the option to disable these "features" and actually give the driver control over how the system behaves. If the driver can't decide basic things definitively and with certainty, like how the speed of the car is determined, then Tesla either needs to take responsibility and liability for those decisions or they need to actually allow the driver to use the features they paid for in a way that obeys them. The former simply isn't going to happen, obviously, because everything Tesla has done is to
avoid taking on any liability. Until my car has its own driver's license the only legitimate solution is obey the driver in any and all cases.