I also just feels like it's a lot of wasted money. GM killed the Streetcar in America and we've been left with a country without any rail infrastructure. Self driving cars make sense in Europe where they could solve last mile problems, but in the US, it's not going to solve any of the major transportation issues: namely congestion and gridlock. There is no way a fleet of self-driving cars, no matter how advanced, can even hope to match the carrying capacity of a tram or train:
http://penguindreams.org/blog/self-driving-cars-will-not-sol...