You're actually talking about people who
do casually defend their own life and health, by choosing to
walk.
In actual urban cities (eg NYC, Chicago, Boston), pedestrians are quite capable of informally navigating with cars, crossing at any point of a street rather than waiting for some preposterous "walk light" (and possibly even being expected to push a filthy button to activate it!?). Streets are a shared resource for many types of users, so it is certainly not a given that a single type of traffic should be given utmost blind priority. That kind of thing is an explicit policy decision, and is currently reserved for the few "controlled access" highways.
I think it will be quite unfortunate if the west coast style of "oblivious" driving becomes calcified as code and exported to the rest of the world. Self-driving cars actually represent an opportunity to roll back this fallacious attitude that "streets are for cars", as a self-driving car is much more attentive and will not tire of being vigilant. For example, if your automatic car cannot gauge whether a crossing pedestrian intents to cross in front of or behind it and make a slight speed adjustment (as said pedestrian has already done, and as current human drivers are expected to do), then it deserves to come to a quick stop and wait there like an idiot until you upgrade it to competency.
In line with the original article, I think this whole subject is an utter red herring and an amazing illustration of how the media can manufacture its own concern over a topic just to fill pages. The thought experiment is specifically called the "trolley problem" because trolleys run on discrete tracks and stop slowly. In the real world braking and turning have basically the same avoidance distance, accelerating does not save you from accidents, and people are never expected to drive off cliffs to avoid pedestrians.