The headline is IMHO overstating it with "truly self-driving car", but it is a step forward: A level 3 system that's allowed to be freely sold, although the situations in which it can be used are limited (for now, German Autobahn at slow speeds, so it's going to be mostly relevant if stuck in traffic).
I think the real breakthrough might be legal more than technical: This is the first "self-driving" system where the manufacturer is liable for accidents, not the driver (though driver might be a misnomer given the self-driving nature)
That's the level 3 part, yes. (Level 2 the driver must always monitor and be ready to react (=Tesla Autopilot) , Level 3 allows the driver to do something else, the system has to provide a warning with time to spare if they need to take over again)