Nobody has built automotive LIDAR units in volume yet. That's why they're so expensive. It's not an inherently expensive technology once someone is ready to order a million units. It does take custom silicon. Tesla, at 25K units per quarter, may not be big enough to start that market.
Continental, which is a very large auto parts maker in Germany, has demo units of their flash LIDAR. They plan to ship in quantity in 2020. Custom ASICs have to be designed and fabbed to get the price down.[1]
[1] http://www.jobs.net/jobs/continental-corporation-careers/en-...
Engineers at Takata and in GM's ignition key department made one choice, Waymo seems to be making the other.
The whole reason the car project got spun out into Waymo was to fast-track commercialization. They do not in fact have an infinite amount of money.
It takes longer for a driver to react to a problem in that mode than to react without it.[1][2] There have been full-motion car simulator and test track studies on this. Even with test subjects who are expecting an obstacle to appear, it takes about 3 seconds to react and start to take over vehicle control from lane keeping automation. Full recovery into manual, where control quality is comparable to normal driving, takes 15 to 40 seconds.
There are now many studies on this, but too many of them are paywalled.
[1] http://www.sciencedirect.com/science/article/pii/S1369847814... [2] http://www.iea.cc/congress/2015/252.pdf
People fall asleep even while actively driving the car. How can they be expected to maintain vigil with something like this.
But I guess Tesla is content with ending their responsibility at "Informing the user that they should be vigil at all times, even when car is driving itself", with out considering how feasible it is.
Another funny thing about it is that, earlier, with regular cars, you only had to watch the errors from the other drivers on the road. Now you have to watch other cars and also mistakes made by your own car's AI...
What could go wrong?