No, Tesla doesn't want to do automatic driving now. They want to hype it now. The software isn't ready yet. In their announcement, they say that the new hardware will, right now, support fewer automatic driving features than the current hardware.
Low-cost LIDAR is a problem that can be solved with money and a customer ready to buy a lot of units. So far, no car company has said "we'll take a million units a year at $100 if they meet these specs." It's lack of demand, not lack of technology. It's a risk for the LIDAR maker. There are automotive radars available better than those currently on cars, but they don't have a volume buyer yet.
You provided no evidence for the hype claim but even then you are contradicting yourself:
Statement A: Tesla is just hyping autonomous driving since no technology can deliver fully autonomous driving right now.
Statement ~A: Low-cost LIDAR is available to any high-volume customer, of which Tesla is one, given Model 3 demand. And LIDAR can deliver fully autonomous driving.
The point simply being, I have a hard time believing that even with good-looking, cheap LIDAR being a possibility, as you claim, Tesla chose to go with an inferior sensor suite, for no apparent reason.
What they're doing now is a minor retrofit to their existing crashes-into-big-solid-objects "autopilot".
The Model 3 is at least two years away. By then, the technology should be better.
Volvo already has a concealed LIDAR in their self driving car.[1] Volvo will put 100 self-driving cars in the hands of ordinary drivers in Sweden in 2017. This is self-driving by the pros. Makes Tesla look amateurish.[2]
And Volvo is way ahead on marketing self-driving.[3]
Low-cost LIDAR is a problem that can be solved with money and a customer ready to buy a lot of units. So far, no car company has said "we'll take a million units a year at $100 if they meet these specs." It's lack of demand, not lack of technology. It's a risk for the LIDAR maker. There are automotive radars available better than those currently on cars, but they don't have a volume buyer yet.