My feeling is Tesla will try to run out the clock on this, and not release "Autosteer on City Streets" out of Beta. At some point Regulation is going to happen, either in response to NHTSA findings or because of other companies getting >=L2 systems on the road. At this point Tesla will not be able to pass the standards and they will have to announce that "Regulations have unfairly impacted FSD". That will put FSD on a much longer path to pass the standards - probably never, but at least it's "Regulations" fault. No money back for Tesla customers.
If they release "Autosteer on City Streets" at roughly the level it is now I think there will be more anger by customers than if they just continue to spin it out forever. Of course they could widely release it as-is, call it Beta, and say they will continue to work on it. It's still likely to fall afoul of "Regulations" at some point, or possibly
IEEE 2846 assuming it gets released.