If this guy was working on adtech, that would be fine. That's very error-tolerant. But this guy is working on automatic driving.
The basic mindset here is to run image classifiers to classify the objects in an image, then use the classifier output to decide what to do. There's no geometric analysis. That's scary. Classifiers just aren't that good. See the earlier article today about adversarial attacks on classifiers. Classifiers pick obscure details of images and use them to make decisions. Nobody seems to know yet how to prevent that. This problem shrinks with larger data sets, where hopefully the irrelevant details cancel out as noise, but, as the speaker points out, that breaks down when you have few training cases of certain situations.
The Google/Waymo approach is to get a point cloud with LIDAR and radar, profile the terrain and obstacles, and figure out where it's physically possible to go. That's geometry based. In parallel, a classifier system is trying to tag objects in the scene, which feeds into a system which tries to predict what other road users are going to do.
With that approach, a classifier result of "not identified" is fine. The system will detect and avoid it, or stop for it, and make conservative assumptions about its expected behavior. Chris Urmson, in his SXSW talk, showed video of a woman in a powered wheelchair chasing a turkey with a broom. This was not identified by the classifier, but it was clearly an obstruction, so the vehicle stopped for it. That's essential here. It has to do something safe with unidentified or mis-identified objects.
At Tesla, Musk insisted that this could be done with a camera alone because humans can drive on vision alone.[1] So Tesla has people trying to make camera-only driving work. Not very successfully so far.
"November or December of this year (2017), we should be able to go from a parking lot in California to a parking lot in New York, no controls touched at any point during the entire journey." - Musk, in April 2017. This guy is saying what Musk wants to hear.
[1] https://blog.ted.com/what-will-the-future-look-like-elon-mus...