Second, while Tesla could just refund FSD purchasers their money instead of upgrading their hardware if they can't deliver, it would be VERY hard to save face while doing so. I don't think the Tesla brand would be willing to take on that amount of negative press. The only way I see it happening is if they give up, blame regulations. But, again, Tesla is a leader, so I don't see them giving up here.
I will bet what will happen is Tesla delivers a few "FSD" features that aren't available under EAP and calls that good.
I mean AP 1 was supposed to pick you up on private property and read stop signs. There was this jewel from the Summon announcement:
During this Beta stage of Summon, we would like customers to become familiar with it on private property. Eventually, your Tesla will be able to drive anywhere across the country to meet you, charging itself along the way. It will sync with your calendar to know exactly when to arrive.
The release of Tesla Version 7.1 software is the next step toward developing fully autonomous driving capabilities and delivering them through over-the-air software updates, keeping our customers at the forefront of driving technology in the years ahead.
Summon Your Tesla from Your Phone
While all the above statements ended up (may still end up) being true, no one at the time knew you would need to buy a new car to get said "over the air" updates. Or that "your" Tesla was actually the new one you would own several years from now, not the car getting the Summon Beta turned on with 7.1.
So I would not read much at all into Tesla's current FSD promises.