That is a ludicrious distinction irrelevant to the end customer. I can't find that distinction on the website, mind sharing a link or screenshot?

Besides, how would you even establish that the hardware is self driving capable if the software isn't? You might need to change the hardware once you realise the software needs changes too?

Maybe you should read it again, because that's clearly not what it says. It lists several features which are available right now under the "full self-driving" moniker, and two which will arrive in the future. As it is right now, the system has more functions available than it is planned to have.