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A self-driving car is defined as "a vehicle that is capable of sensing its environment and moving safely with little or no human input" https://en.wikipedia.org/wiki/Self-driving_car, but Tesla's Full Self-Driving feature actually requires human input. This is confusing.

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Yes, Tesla's "Full Self-Driving" is not autonomous enough to operate without you paying attention to the road at all times.

But they advertise it as if you can sleep in the driver's seat (I think they literally have said that in the past).

lol they absolutely do not. where do you get this stuff?

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