And yet here we are 12-18 months later and the car is driving pretty well without radar.
The point really is that the old radar was not giving much bang for the buck. It wasn't good enough to over-ride the cameras, so the vision system needed to be good enough that it didn't need radar .. so where was the value add? Fast-forward to today, and technology improves (and gets cheaper) and the equation changes, the newer radars CAN add value, as the cost is lower and accuracy way better. And so they are adding radar back.
One thing to remember is Tesla's decision to equip all cars with all the hardware for FSD, in order to make it an "instant OTA upgrade". This is good for Tesla (instant gratification and stuff like subscription models) but does mean that there sensor suite cost is critical since every car must have the hardware.