NHTSA Level 3 ("Limited Self-Driving: Vehicles at this level of automation enable the driver to cede full control of all safety-critical functions under certain traffic or environmental conditions and in those conditions to rely heavily on the vehicle to monitor for changes in those conditions requiring transition back to driver control. The driver is expected to be available for occasional control, but with sufficiently comfortable transition time. The Google car is an example of limited self-driving automation.") is OK. That means that the self-driving system can recognize situations it can't handle (snow, potholes, crowds in streets) and come to a safe stop if the driver doesn't take over.

It's Level 2 ("adaptive cruise control in combination with lane centering") that's the problem. Therein lies the deadly valley - good enough that the driver can tune out, but not good enough to handle trouble. That's where Tesla is. Level 2 with strongly enforced hands-on-wheel seems to be OK, but don't let the driver take their hands off for long periods.