Some times, things just take time. Especially when you're trying to create machines capable of not killing the general public.
https://www.sae.org/news/3544/
Ofcourse, the lower levels of automation will be reached first.
I call a car that is cornering, accelerating/braking, actively dealing with traffic and finally parking itself a self driving vehicle.
And by the way, the auto-pilot video is underwhelming. Several companies have more advanced self-driving tech than Tesla, e.g. Waymo is at least 3 years ahead.
http://spectrum.ieee.org/cars-that-think/transportation/self...
https://www.theatlantic.com/technology/archive/2017/08/insid...
But even an area that was unsuitable for self-driving cars half the time would see huge demand for self driving cars: half the time the car would drive itself, the other half it would be a regular taxi driven by a human being.