Much better than what Tesla offers since you can read a book, watch a movie, etc. Basically you don't have to pay attention. And Mercedes might be taking on legal liability for the system. They do that in Germany, not sure if they're doing that in the US.
Yes, as a manufacturer they (and everyone else in the chain of commerce) have strict liability for damages caused by product defects in the US, even with the US’s comparatively weak consumer protection laws.
I’d be surprised if that wasn’t the case in Germany, independent of any decision Mercedes would make beyond the one to make and sell the car.