You asserted that, "the percentage of daily miles driven where FSD can perform flawlessly is likely less than 5% of total miles".
If FSD can operate in situations such as the one in the video, you are wrong by at least an order of magnitude. And FSD does not have to perform flawlessly to perform better than humans.
Except that without a lot more information on that vehicle we don't know if it is optimized for a very specific scenario (low speed driving in crowded areas), or if it could perform similarly on a highway at 65MPH during snow or rain.
There are TONS of examples of FSD working well in various scenarios online. Having worked in video analytics/AI for the last 15 years I have seen all kinds of demo video that is essentially highlight reels, while the evidence of the product utterly failing is not released.
That video creates more questions than it answers.