The rotating Velodyne thing Google uses is an interim research tool. In production, expect to see better design.
With enough LIDAR units, full-circle coverage can be achieved. This is already being done with cameras. The rear and side units need less power and range than the front-facing units, so they can have a smaller collecting aperture, making them easier to place. For the front-facing units, the emitter can be spread out, allowing higher power. The rules on eye safety are concerned with the maximum power coming through a 1/4" hole (human eye pupil). If the laser emitters are spread out over the width of the windshield, the maximum power per unit area is reduced.
The CMU/Cadillac demo a few years ago managed to conceal all the sensors. It can be done. It just costs too much until one of the three companies claiming to be building low-cost automotive LIDARs Real Soon Now manages to deliver.