I guess my Counterpoint to using Auto steer on city streets is that Tesla obviously knows when I'm driving on a city street. It limits my auto-steer to only 5 miles per hour above the speed limit. On a highway it does not limit my auto steer to 5 miles an hour above the speed limit. So my thinking is auto-steer is not recommended for City driving but the future is still enabled obviously. If the future was truly dangerous Tesla should disable the feature when it recognizes a driver is on a city street. It simply gives the driver overconfidence that he shouldn't have on city streets. It would almost be like if seatbelts didn't work in a crash above 80 miles an hour. Well we still wear seatbelts and sometimes have crashes going a hundred miles an hour. So should we just take our seat belts off if we go above 80 miles an hour because they're not going to work properly at 120 miles an hour? Of course not we still wear her seatbelt. Obviously not an apples-to-apples comparison but it's just something that came to mind
Your analogy isnt really close at all. A better analogy is someone driving 75 MPH in a residential zone. The car will let you do it, and some people do, even though they shouldnt. We really cant expect the car to automatically slow down in a residential zone just because it knows you are in one.
That would be kind of like the car not letting someone go over the speed limit because the car saw a speed limit sign.
What it actually boils down to is, you used a feature that it sounds like you know is not ready to be used in the manner you used it in, and then are surprised or dismayed it is not working "properly". Looking at your video, it sure is a good thing you were paying attention and were not looking at your phone, because if you were looking down at that instant you almost certainly would have hit that car coming the other way.