Earlier quoted context omitted.
Wheels are still used for legal telemetry: speedometer and odometer.
The legal requirements on that (in most places) are that the speedometer is in something like a -0%/+10% range, i.e. never shows lower than you're actually driving. Not only is that not helpful for navigation (but you could compensate that/shift the error window), but the precision is also pretty low (which you can't easily compensate). (There are two precision problems here — tyre diameter changes slighly while you'…
My understanding is that using plain accelerometers and gyros will drift quite soon due to noise, while some cars (e.g. Tesla) maintain their position quite well when doing to an underground parking structure and then coming back. So I actually do believe that they put a lot of weight to tracking wheels, which I believe would not accumulate that much error. (For more precise location they'd still need to use accelerometers to detect downhill/uphill, though.)
So I believe that the precision actually favors wheels, not IMUs.
In the underground parking case it doesn't actually matter too much if there's a certain % offset, because you're very likely driving a near-closed loop of some sort; and as you say, the wheel size ratio can be calibrated upon good GNSS data.