That's similar to cruise control. Cruise control can be dangerous because someone could fall asleep (not having to manage your speed can afford up sleepiness) and the car wouldn't slow down.
In my opinion, those options are all the driver's responsibility to know their own limit and understand that the tool is just a tool and you are responsible to making sure your driving is safe for others. Tesla autopilot adds a ton of safety features that avoid a lot of collisions based on lacking attention, sleepiness, and actively avoiding other drivers faults. But it's still just a tool and the driver is responsible of their own car and driving.
After 3 alerts, it's off until you park. There are visual cues that precede the alert though and these do not count. I don't recall how many there are and for how long, but you start by seeing a message asking to have your hands on the wheel, then a blue line at the top, them the line starts pulsing ,then you've got an audio alert that is the first strike. Three strikes during the same drive and you need to park before using autopilot again.