I don't know why Tesla is so focused on self driving in cities. Seems like a far better use of time would be to get to level 3 self driving on highways (which is what other automakers seem to be trying to do). That gets you most of the benefits of self driving (not having to pay attention for long trips), with probably 1% of the complexity of city driving.
Getting city driving working just seems so impossibly hard, there is no way you are going to be able to use ML to determine road rules since they vary by jurisdiction and over time, and there are so many edge cases you won't have enough data for. But how do you write a program that can read a street sign, interpret it's meaning, and act upon it safely?
Even if Tesla just got autopilot to the point where it could be level 3, where drivers don't have to pay attention, that would be a massive improvement, and so much easier than FSD.
Maybe they painted themselves into a corner though with all Elon's blatant lies about FSD, can't stop development without a lawsuit. They seem kind of screwed anyways, looks like they are running into the limits of the current camera positioning and onboard processing power, might need to do another iteration of replacing every FSD owners hardware.