"Because it's not an autopilot. It's a very good cruise control with a little bit more advanced technology in it"
Then it is actually better than most autopilots, which are just the equivalent of cruise control.
For deity's sake, Tesla go out of their way throughout all their manuals and most of their publicity to state that you must remain attentive and ready to take over with your hands on the wheel. How much clearer can they be?
Also, he states that he did remain attentive and knew he needed hands on. However;
1) he chose not to keep his hands on the wheel "because the car didn't tell me to", and
2) how much attention could be have been paying off he didn't notice a bloody fire engine?!?!
Sounds like the problem is the nut behind the wheel to me....