Earlier quoted context omitted.
I actually think that low speed driving and parking in very narrow streets is much easier for an autonomous system than for a person. All those obstacles are made of stone so nice juicy returns for the sensor systems. Carrying out a turn with a centimetre of clearance from a hard surface is much easier for a computer than maintaining lane discipline on a road with faded markings at high speed.
A lot of impact avoidance with other vehicles and pedestrians is done by communicating with looking at each other though. The easiest solution, car always yields, would just mean it will take forever to move because people will lose all respect and just treat it like a solid obstacle. Also, sometimes cars can and do pass within a few cms to humans (ok if everyone is aware of the maneuver and it's slow), would an auto…
I've often wondered how self-driving cars will deal with this. Imagine we reach the point where self driving cars are perceived as being guaranteed to stop before hitting a pedestrian.
This presents a lot of problems that need to be overcome. A car-jacker could rob you simply by getting an accomplice to stand in front of your car. Teenagers might start jumping in front of cars as a high-tech game of chicken. What happens when somebody steps into the road and the car brakes so hard it gives the occupants whiplash?
I'm sure all of these problems will be solved in time, but it's going to be interesting to see how!