Tesla has implemented FSD Beta as a driver assistance feature, so the current behavior of showing a warning even in fair weather prepares the driver for the increased likelihood of FSD Beta suddenly cancelling or generally acting less predictably. Indeed, Tesla will need to do something better for more automation, but just because they don't now doesn't mean some future software won't be able to with the current hardware.My 2023 Model S LR with Tesla Vision thinks the weather is poor in cloudy/sunny days, and can't see well enough to allow FSD to keep working when it is raining.
End-to-end has potential to drive better than 11.x as controls don't need to strictly follow uncertain and low confidence perception in heavy rain. Often times it may be okay to drive based on what was previously seen, so end-to-end could learn to rely on its memory from previous frames somewhat like object persistence when vision is occluded. The obvious danger then is if expectations from memory don't match up with real world behavior such as the lead vehicle suddenly braking, but potentially a blur of bright red even without a clearly identifiable vehicle can still result in appropriate braking control.