What about legal? As in, if I'm being driven around my Mercedes-Benz while watching a movie on my phone and something happens, am I not gonna get fucked by the cops?
10 seconds is a ridiculously long time when driving. What was the logic for that timeframe? It seems to me you either need to be ready to take over in an instant or basically not at all.
That would depend on the exact laws in particular jurisdictions where you might operate the vehicle. In some areas, law enforcement could cite you for using a phone even if the manufacturer had taken on the civil liability. Longer term some of those laws will probably change as Level 3 autonomous vehicles start to become more common.
Absent legal/regulatory changes/waivers, the fact that MB is offering to cover financial liabilities would seem to be pretty much irrelevant to legal liabilities. So basically "we'll cover your costs" is pretty much irrelevant if you want to drive in a manner that would normally be considered reckless.
But there's talk of certification so this may be taken into account. One would of course want to see specifics.
There are limits - while you can watch a movie, you have to be ready to take over within ten seconds.