My take on this is that they have a feature that is not quite ready for prime time. They could wait and make it available when it is ready for prime time. But I wanted the feature now. So instead of waiting to offer it, they said, in effect, "Here are some beta features. They're not really ready yet. But if you want the beta version, we'll sell it to you." I wanted it so I bought it. Some folks didn't want it and did not buy it. I did not pay for FSD because I believe that's not going to be ready for some years yet and will do better with additional hardware.
Tesla made it very clear when we ordered our cars that they were offering to sell us a beta feature. And that autosteer would require constant hands on the wheel. They didn't try to scam anyone. I can dribble some paint on a canvas and then offer to sell it to you for $5,000 and I'm doing nothing wrong. If you don't think it's worth $5,000 you won't buy it. I think the request to unbundle TACC from autosteer is a reasonable one, but many carmakers bundle options. I had to pay for options in my 2004 Prius that I did not want, in order to get the ones I did want, because options were bundled, not offered separately.
What is genuinely disturbing is how fatally flawed the earlier version of autosteer was, as shown in the video in the OP. I was so uncomfortable with the performance of autosteer when I first got my car that I did not use it again until I got 2018.10.5. I do think that what we saw in the video was unacceptable. Were it not for OTA updates, after seeing that video I'd have asked Tesla to refund my $5,000 and disable EAP in my car.
... I find it silly I had to purchase AP in order to have the car self park while other manufacturers give it away for free:
No feature in any car is free. Some car makers bundle some features in at the base price. Auto-park in the Honda is not free. You're paying for it. You just don't have the option to not pay for it.
For Clarification. Doesn't Tesla say AUTO STEER is BETA. Not sure they say AP is BETA. I assume TACC is part of AP. Does Tesla say TACC is BETA?
Yes, both the owner's manual and the screen (where you turn it on or off) say that TACC is a beta feature.