It's a good question, and I'm dismayed to see the various knee-jerk reactions to it. Seems to get caught up in the pro/anti-Tesla/Musk/blah noise. No, thank you.
Here's the thing - people get in accidents all the time when assistance features like ABS, lane keeping, traction control, TACC, good-old-fashioned dumb cruise control, etc. are actively altering the vehicle's performance and behavior.
So when we consider Tesla's AP system, it's really just TACC + lane keeping. Something that is common on a wide variety of vehicles today. Why then is Tesla specifically being focused on? All these other systems have similar failure modes, including, but not limited to: Not stopping for a stopped vehicle far ahead, not slowing for or avoiding objects in or near the lane, etc.
These are assistance features. Thus, in all of these scenarios, it is likely that chief responsibility for the accident lies with the human behind the wheel. We should be studying all OEM systems, not just Tesla's. And specifically, we should be looking at whether the system made the situation worse through its actions than if it had taken no action (akin to a distracted human driving on dumb cruise control).
If it is the case that a Tesla on AP will ram right in to a firetruck flashing its lights while stopped in the lane directly ahead, it is quite likely that many other systems do the same. We just don't really talk about them, because it casually falls under the realm of "human wasn't paying attention". They're not special. We all sort of implicitly accept that. But when it's a Tesla, it's special.
In any case, we'll get over it eventually. This technology is not unique to Tesla and will only become more commonplace. It will continue to get better at avoiding things despite the hoards of distracted drivers.