It's not that their FSD tech isn't less impressive, it's that it's not FSD tech.

Even worse (for Tesla) is that if they do try an make their non-FSD tech do FSD, and it decks little jimmy because the flashlight in his hand looked like a far off street light, Tesla is liable to face a knee-jerk federal law mandating lidar. And just like that the dream is dead.

This forces Tesla to be extremely paranoid, as it's one visual mistake away from being told to use lidar.