While in principle I agree, the Model S put Tesla in a situation where Tesla had to release a quality, functional car on time that could be produced at up to 20,000 units per year. Those criteria were far and away the number 1 priorities. Tesla has meet those criteria (well, they're still working on ramping up production, but I have faith). I'm more than impressed with the job they've done so far. I'd cut them a little slack. I'm sure the Gen III car have all the less important things that the Model S missed out on.
As Elon has said from the beginning, it takes three iterations to really figure out how to do something perfectly (just like in software). By the time they get to the mass market car (Gen III), it should be comparable or better in almost every way to a BMW, Audi or Lexus.
And since Tesla is putting out the best product it can in the short amount of time they have had then I would expect that there will be upgrades on the interior in Model S 2.0. They're still learning how to do the things that the big companies have had decades to learn to do.