I'm in the FSD beta and previously Tesla bounced the radar off the ground and was able to see a few car lengths ahead, vision only, not so much. The effect is when stuck in heavy traffic on surface streets FSD beta will think it should try to go around a lead car that is stopped, not knowing there is a long line of traffic ahead of the lead car. I don't see how they can overcome that issue with vision only, especially given current camera placement.

Could you do this with cameras? Possibly, but it would be a lot of cameras and a lot of mechanical parts—not ideal for a car.

Using more and better sensors is an attempt to compensate for the shallow mental model, so you'd have cars still being 'dumber' than human drivers, but if they're all-knowing, that doesn't matter quite as much.

This is a decent thread that has some visuals, some others have created 3d models demonstrating the blind spots the cameras have.