Earlier quoted context omitted.
The reasoning is cynical but sound. If the system uses only the sensing modes people have, it will make the mistakes people do. If a jury thinks "well I could have done that either!" You win. It doesn't matter if your system has fewer accidents if some of the failure modes are different than human ones, because the jury will think "how could it not figure that out?"
I don't think that's the reasoning. The reasoning was simply that LIDAR was (and incorrectly predicted to always be) significantly more expensive than cameras, and hypothetically that should be fine because, well, humans drive with only two eyes. Musk miscalculated on 1) cost reduction in LIDAR and 2) how incredible the human brain is compared to computers. Having similar sensors certainly doesn't guarantee your acci…
It is pretty incredible but people will (rightly so?) hold automated drivers to an ultra high standard. If automated driving systems cause accidents at anywhere near the human rate, it'll be outlawed pretty quickly.