A few thoughts:
The system alerted the driver to take over when he had his phone in front of his eyes, presumably blocking the in-cabin camera from seeing his eyes. So while the system does let you take your hands off the wheel and play a game or watch a video on the screen when activated, it still needs to detect your face to know that you are able to take over if needed.
The system automatically used the horn when the car in front was reversing and going to hit them. It also alerted the driver to take over.
The system also alerted the driver to take over when it detected an emergency vehicle approaching from behind.
The guy in the video says that the system will give the driver up to 10 seconds to take over but in the video, it seems like the system asked the driver to take over pretty quickly. There did not seem to be a few seconds of advance notice. Personally, I am a little wary of how well the "10 second" rule will actually work in real world conditions.
The system also requires a car in front before it will be activated. The guy in the video says it is a safety feature to make sure the car does not hit something it failed to detect. This is an example of limiting the ODD in order to try to reduce safety risks.
Honestly, the system feels very similar to current AP. It is just doing lane keeping and maintaining distance from a lead car on the highway. The only difference is that because the ODD is more limited and there are safeguards (lead vehicle) there is no hands on wheel requirement when the system is activated. But the system alerts the driver to take over, similar to AP. I feel like if Tesla were willing to limit the ODD in the same way and had good driver monitoring, Tesla could probably make AP on the highway L3.
I feel like L3 is an intermediary step between driver assist (L2) and full automation (L4+). It reduces the hands on wheel requirement compared to L2 but without going full driverless yet. I still don't think there is a ton of value in L3 systems. Personally, I prefer the approach of AV companies like Waymo and Cruise to just focus on L4 from the start. I think it makes more sense to develop a system that is good enough that the human can be just a passenger all the time. It avoids the difficulties with letting the driver not pay attention in some instances but then also needing the driver to take over in other instances.