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Used FSD Question

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No.

Anywhere Tesla uses the phrase “Full Self Driving Capability” - it is equipped with the FSD hardware AND software. It means it already has the FSD package. That is a point of confusion for many but the phrase “Full Self Driving Capability” has a specific meaning at Tesla ... it’s not just “capable”, it does have the package.

You are right that AP1.0 vehicles cannot have FSD.
I bought my X in May with MCU1. My car wouldn’t recognize stop lights, stop signs, cones, etc. Therefore, it was NOT capable of fully self driving itself UNTIL I bought the MCU2 upgrade. My point was that AP1 cars will never be capable, AP2 and above are ‘capable‘ with the correct upgrades to the hardware.
 
With AP1, the AP software ran on the console processor (MCU1).

When AP2 was introduced, the AP software initially ran on the console processor - and was then shifted to run on the new FSD/AP processor.

With FSD, the software is running on the new HW3 processor. The MCU is used only for the user interface and FSD visualization.

MCU2 has a single processor that drives the console and dashboard displays.

But MCU1 has two processors - one for the console display and one for the dashboard display - both processors are powerful enough to display HD video. Even if the MCU1 console processor is sluggish, the dashboard processor isn't that busy, because most of what's being displayed is static text and images. The dashboard CPU/GPU are probably fast enough to display what is seen on MCU2 dashboards.

Any differences between MCU1 and MCU2 vehicles with FSD is more likely due to software source code compatibility. Especially for graphics intensive applications, different source code may be needed to implement visualization on MCU1 vs. MCU2. And because the percentage of Tesla vehicles with MCU1 and FSD is small (and getting smaller), Tesla has decreasing incentive to continue re-implementing software to run on the MCU1 processors.

Today, I don't see any significant differences between our MCU1/FSD S and MCU2/FSD X - and can't justify spending $2.5K to upgrade our 2017 S, especially since we use the radio. However, if Tesla does add the ability to retain FM/HD/XM radio with the Infotainment Upgrade, will strongly consider upgrading our MCU1 - and get access to the full FSD visualizations along with the newer features only available on MCU2.
The FM/Sirius XM radio capability is supposed to be added to the MCU2 upgrade sometime this quarter. It will be an added cost (above the $2500) to do so, however.
 
...The lag with MCU1 only impacts the MCU functions and not FSD. I have been using all available FSD features since June with no issues....

It's true that if you mainly use Autopilot without relying on automatic routing and re-routing for automatic exits, automatic turns... then MCU1 with HW3 will work fine.

HW3 does not do the routing so it needs MCU1 to do it.

MCU1 is slow but it can do the routing fine if you wait for it. It's no big deal to wait for it at the start.

However, the concern is: Once on the road, if the MCU1 crashes, you still have Autopilot without navigation fine, we'll just do manually exiting and turning. It's the same problem when the system misses an exit and MCU1 needs to recalculate the route. That route recalculation may take time and that might miss another automatic exiting and turning...

One of the advantages for this coming release is automatic turns and exits so it's important that MCU1 can calculate and re-calculate timely for that purpose.
 
HW3 does not do the routing so it needs MCU1 to do it.

Sounds like you are talking about hypotheticals. I have no issue using NOA when re-routes are required. You may be right when re-routes are needed on a very timely situation. MCU1 will take longer to respond to the re-route. How often is this a problem. I haven't experienced it as a problem with NOA. But, since you are on a Hwy, a delay is no big deal. I do see your point when driving on city streets or similar. Ideally, I will and others may want to upgrade to MCU2. I just haven't seen where it is needed as of yet. I am actually waiting for the price to come down.
 
How big of lag are we talking about?
The lag is with the voice commands and navigation routing on 1st use of a drive. It can be pretty bad if you are expecting those features to work instantly. When I do not have the USB drive for Teslacam installed into a port. These issue go away. So, I believe it must be related to Teslacam. I was hoping a future update fixes the issues. Seems like a software bug.
 
I bought my X in May with MCU1. My car wouldn’t recognize stop lights, stop signs, cones, etc. ...
Did it have hardware 3 installed? According to Tesla MCU1 is capable of FSD. If you are talking about visuals then yes, but visuals are not FSD. FSD is about getting you to your destination with minimal driver input, it is not about graphics on the display, although that is helpful to keep the driver informed.
 
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Did it have hardware 3 installed? According to Tesla MCU1 is capable of FSD. If you are talking about visuals then yes, but visuals are not FSD. FSD is about getting you to your destination with minimal driver input, it is not about graphics on the display, although that is helpful to keep the driver informed.
Currently running MCU1 with FSD. Stop sign and stop light FSD functions work fine. But, your point is heard. Visuals are different from function.
 
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Did it have hardware 3 installed? According to Tesla MCU1 is capable of FSD. If you are talking about visuals then yes, but visuals are not FSD. FSD is about getting you to your destination with minimal driver input, it is not about graphics on the display, although that is helpful to keep the driver informed.

The Infotainment Upgrade page explains: "Upgrade your Infotainment system to access new features, as well as a more advanced and smoother user experience."

1) "New features" such as you said "visuals" but I agree that if the car runs on its own, I don't need its "visuals".

2) "smoother user experience": MCU1 has worked quite smoothly with HW2.0 and HW2.5 but as soon as you swap HW2.0/2.5 computer out for HW3, the HW3 just takes so many demands from MCU1. Thus, "smoother user experience" is why some people prefer to pay for the MCU2.
 
Yes, MCU2 is much faster and smoother than MCU1. I saw a youtube video comparison showed that MCU2 in some cases is 10x faster when trying to navigate and load a map. Voice commands work better with MCU2. There are features like netflix that don't work with MCU1.