Yes that is my understanding as well. Just one caveat: feature complete means that the features don't have to be perfect. But feature complete does not automatically mean that the features won't work reliably at all.
Nothing is ever perfect. I do not believe that Tesla is going to leap from the present system to something way beyond what Waymo currently has in one bound. It is my belief and opinion that if Tesla releases City NoA with stoplight and stop sign response and left turns across traffic at uncontrolled intersections it will be extremely unreliable. Which is why I don't think they will, any time soon.
... For example, right now, I can go from my house to a friend's house that is 340 miles away, almost hands free thanks to NOA. ...
Bottom line: If Tesla could pull off highway NOA and City NOA to be hands free with supervision, I would certainly call that "feature complete FSD".
I'm pretty sure you are not driving hands-free, ever, beyond maybe letting go of the wheel for a few moments at a time. I absolutely love autosteer and it reduces the stress of driving considerably, as I can maintain all my attention on keeping my eyes open for obstacles, pedestrians too close to the road, cars driving over the line, etc., while the car maintains its speed and keeps itself centered in the lane. But AP and EAP are
hands-on driving
at all times. Hands-free would be Level 3 or higher and we are nowhere near that yet.
Feature complete does not mean that they failed. Feature complete is the first step towards not needing a driver. As I said before, Tesla can't go directly to not needing a driver. They have do feature complete first.
Maybe I expressed myself poorly. "Feature Complete" with hands on the wheel, eyes on the road, and the driver is responsible at all times, to take over without any notice, is what Tesla is promising now, as its fallback position once it realized that it cannot fulfill its promise to "FSD" buyers:
Tesla promised that the car would not need a driver (Level 5 operation). When it realized it could not accomplish that, instead of apologizing to "FSD" buyers and refunding their money, Tesla just quietly and without fanfare, removed those claims from its web site and began promising "Features" that would still need a constantly-alert driver at all times, who will need to keep her or his hands on the wheel at all times, and who will be fully responsible for anything the car does, at all times and without warning. The fact that this may be one step along the road to driverless operation is irrelevant. Tesla took money for something it thought it could deliver, and when it realized it could not, it moved the goal posts and made no apologies to the people whose money it had taken.
I predict that when Tesla announces that "FSD" is "Feature Complete" it will say these are BETA features, just as years after its introduction, Tesla still says that autosteer is a BETA feature.
How is a feature "complete" if it's still in beta?