Have you ever used Autopilot yourself?
I agree that if somebody played with their phone while on Autopilot, it would be dangerous. If you have to context-switch and put your hands and feet back into position, it might be too late.
But Autopilot is designed for you to keep your hands on the wheel at all times. I use it on a daily basis. And while I have not measured my "Autopilot disengagement reaction time", I am sure it is in the range of mere milliseconds.
If you had to react to a notice on the screen, or even just to warning sounds, it all would be horribly slow. But when you use Autopilot, it all works through tactile feedback. You feel each tiny movement the car wants to make, be it steering left or right, braking or accelerating. And while a driving instructor has to reach over to take the wheel, all movements the car makes are "piped" through your own muscles.
> The only reason I find autopilot justifiable is if it's quantitatively better than the human driver.
That's the point. And to make that happen, Tesla needs this current generation of "supervised Autopilot". Because somebody's got to train and fine-tune that neural network. You need humans to make the system super-human.