My understanding is that LIDAR is diminished on the aspect of not just "not needed," but also potentially exacerbating local minima under good (e.g. fair weather) conditions.
Having LIDAR means you can rely on LIDAR, which means you need the LIDAR to be 100% reliable. I've read some companies claiming their lidar works through rain and snow but I haven't seen actual renders of it yet to judge for myself.
No lidar acts as a forcing function for Tesla to get their vision system that much more reliable. I think this will ultimately result in a better vision system than the competitors, and I believe that (somewhat paradoxically) this will result in an overall better, safer, and more reliable system, when it comes to the 20% long tail.
Lidar+vision will probably dominate in fair weather driving. I'm skeptical it's of much benefit in bad weather, and that long tail is the hard part.