En route to L4, we don't know yet if Tesla will ever give drivers permission to not pay attention at all times. They may decide L3 is too risky for them.
But, how do we know where Tesla is actually going with this?
L2, L3, L4, and L5 are all very different directions. We like to see them as stepping stones, but how you develop for one isn't necessarily how you would develop for the other.
L2 is not autonomous driving, but failing is sometimes the goal. Sometimes people purposely fail to win the long game.
L3 is clearly not the goal. You certainly wouldn't be messing around with city streets if freeways were the goal (what L3 is meant for)
L4 is my choice of a goal, and it seems pretty popular on in this section of TMC. But, I don't seen any evidence from Elon/Tesla that this is even on their radar.
L5 is actually what Elon mentions when he talks about FSD, and the way Tesla determines path planning from vision is an L5 requirement. As in if you don't have that you don't have an L5 system. An L5 system vehicle needs to be able to go on roads that the system hasn't seen yet.
L5 is often rejected as a fairytale, and I agree that it is. But, that doesn't mean Tesla won't use the failure to achieve that to leave the system on L2.
With the FSD beta Tesla knows regulatory agencies are watching. They know at anytime between now, and the wide release of city NoA that the regulatory agencies can put a stop to it. Without billions of miles of testing there is no L3, L4 or L5. Without the fleet doing the testing for you then you lose a key advantage Tesla has.
It's going to be an exciting, and dramatic 6-12 months that will decide the fate of FSD on HW3