No, you are still mistaken in the driver needing to take control after the 10 second period (or whatever time is defined). They don’t. They should, yes, but the car still can’t just give up even if they don’t. What the car can do, then, is make a controlled stop — at least in-lane. (Level 4, when leaving its ODD, must make a safe stop in a minimal risk condition and can’t stop in-lane.)
While Traffic-jam Pilot is a limited system regarding its rather slow and specific ODD, it is actually fairly clever in how it asks control of the driver and is thus a good example of what Level 3 means. This has been demoed to the press in Germany and all I describe works already in the system. Feature complete, shall we say.
When it is approaching the end of its ODD (or indeed has gone over it due to traffic conditions changing rapidly) the car pings the driver for control audiovisually. One end of the ODD would also be if it notices you falling asleep through driver monitoring. The driver then has 8-10 seconds — whatever the exact figure will be in production — to take control after being thus warned.
What happens if you don’t take control is the part where it really differentiates itself from Level 2. No, the control is not ”thrown at the driver” after that time forcibly. Instead Traffic-jam Pilot starts making more noise and pulling the driver’s seat belt in an effort to get them to accept control. All this time the car will continue driving and will continue being responsible for the drive. This process may well take longer than 10 seconds.
If the driver still doesn’t react, eventually the car assumes a medical emergency, turns on the hazards, slows down and stops in-lane in a controlled manner, turns on all lights, unlocks all doors and calls for help.
Assuming Audi can release this eventually as Level 3, this is how it should work in production too.