But cameras now cost under a $1 each in volume (thanks smartphones!) so dirt cheap. An imaging based point cloud extraction system main components are therefore cheap. Add a GPU enabled system to process (it's quite compute heavy) and you are set. OpenCV has the algorithms needed.
LiDAR is an active sensor in that the laser "illuminates" the target area. This adds cost but that is coming down quickly. Also as the sensor delivered 3D points (not images) the computational cost with images can be saved; so less CPU/GPU required.
Levandowski is a LiDAR guy. It's what he believes is the best solution for the problem.
Some feel that LiDAR is not a fit either as it doesn't work well in rain/fog/sleet/snow. There was a youtube video showing a self driving car running a test course in clear weather and again in the rain. You would not want to be a pedestrian during the rain test.
In reality this is all engineering dick waving. Prices will come down and the sensor payload will converge.
For full autonomy it is likely that cameras, LiDAR, Radar, and sonar all will be used. They all bring some advantage to the problem that addresses a weakness of one of the other sensor techs.
Oh yeah, and Levandowski is a complete prick. Someone should teach him about IP theft and give him a prison life lesson. He's going to need it.