I think that a suspension pending investigation and possible remediation is appropriate.
I realize assuming this is the California DMV's line of reasoning is speculation, but this sentence from Cruise's own public statement on the event really does it for me (emphasis mine):
> The AV detected a collision, bringing the vehicle to a stop; then attempted to pull over to avoid causing further road safety issues, pulling the individual forward approximately 20 feet.
The tricky thing about these vehicles' control software is that it has absolutely no judgment or common sense. That's really on display here, where the vehicle immediately goes into a canned program instead of following a course of action that takes into account all the details of the situation in which it found itself, not just the ones that its creators had anticipated.
That doesn't necessarily mean that testing self-driving cars on the roads is inherently irresponsible, but it does mean that the ground rules for how we manage such programs need to be tailored to the situation. What we have here is a situation where a rather nasty software defect has been discovered. We can assume that this defect is present in all of the vehicles Cruise is operating on public roadways. It is therefore reasonable and prudent to temporarily suspend autonomous testing operations on public roadways pending analysis and remediation.
Because, let me emphasize again, TESTING. Pausing to analyze and iterate when you find problems is an essential part of testing. It's arguably the main thing that distinguishes testing from just YOLOing shit into production.