If I understand that person correctly, you are confusing the two systems.

Mercedes has two systems. One of a driver assist system that does everything the current version of FSD can do. It is unlimited in the same way that Tesla's FSD is unlimited.

They have an additional system, that you cite, that is Level 3, a true hands-off self-driving system. It is geographically limited.

So, the question is, does Tesla have any areas where you can legally drive hands free using their software?

That is the new system. Tesla has no equivalent to it. Or to phrase it differently:

Drivers can not activate teslas’s equivalent technology, no matter what conditions are met, including not in heavy traffic jams, not during the daytime, not on spec ific California and Nevada freeways, and not when the car is traveling less than 40 mph. Drivers can never focus on other activities. The technology does not exist in Tesla vehicles

If you are talking about automatic lane change, auto park, etc (what tesla calls autopilot or full self driving) these are all features you can find in most if not all high end cars nowadays.

The new system gets press coverage, because as I understand it, if there is an accident while the system is engaged Mercedes will assume financial and legal responsibility and e.g. cover all expenses that result from said accident. Tesla doesn't do that.

I would much rather use FSD that is limited to routes and conditions where the developers and testers agree that it's safe.

Compared to a company that says "everything works", and "those drivers that got killed must have been doing something wrong".