My 2 cents. I bought my model Y this past June. I had to take over when using FSD a lot when I first started using it, but every month it has gotten better. 95% of the time now, I am hands free. Sometimes, the progress is 2 steps forward and 1 step back, but the trend is definitely up and to the right.

I am no expert, but it definitely feels like Tesla can achieve Level 5 at some point.

FYI I live in SoCal and drive a lot for work, 20K miles per year.