Autopilot 2 keeps you in lane, does traffic-aware cruise control, and can do lane changes. That's it. No more, no less.
It sometimes gets spooked by shadows. I've had it brake sharply when going under bridges on the motorway, because of the shadow on the road. I've had it mis-read lane markers (in understandable circumstances; the old lines had been removed but the marks they left still contrasted with the tarmac).
If anything, I find Autopilot 2 to require too much hand-holding - literally! I rest my right hand gently on the bottom-right of the wheel when Autopilot is engaged, resting my wrist on my knee, which is also how I drive regular cars on the motorway. This isn't enough for Autopilot to think I've got my hands on the wheel, so it's constantly bugging me, and I have to wiggle the wheel to tell it I'm there.
Apparently some Model 3s have been seen with driver-facing cameras. Eye-tracking seems like a much better solution to me.
I love Autopilot. I recently had to drive ~500 miles on motorways in a thing that explodes ancient liquidised organic matter, and it was an absolute chore. Autopilot is ace when used as intended, and great in traffic jams.