Granted Tesla is pretty naggy about the updates should you choose to hold off. But as far as I know, it's not limiting any functionality should you choose to do that.
For example the Polar watch app simply says you need to update the app firmware to keep using the app: that's not opt-in.
[a]: Genuinely asking. I don’t own a Tesla
I have it sitting on that screen, nagging me, and, honestly, it's depressing.
You're not forced to. The car will alert you when there's new software available and even download it when you're connected to wifi (which I never am because I live in an apt and park far from my actual apt), but you still need to decide when to schedule the install, because it can take 30-90 minutes to complete. The UX has not yet degraded to the point where Tesla decides 'eh, you don't need your car at 3am to go to the airport/hospital today.'
I do believe there are cases with critical bugs where Tesla can force the update.
I have the v11 update sitting on my car and I'm not installing it until I hear some of this stuff is fixed.
Telsa will eventually push an update through to your car over cellular. (or during service, when your car will automatically connect to the tesla service center wifi)