The only rational -non delusional- reason I see for the talk is if Musk does it to get better financing terms before the self driving hype dries down.
I think taxi services without driver are coming but the the secret sauce is remote human operator working together with high level of automation. Driver is the main cost of taxi service. If you get one operator to remotely oversee 20 highly autonomous vehicles and provide input when needed, the cost of taxi-service drops into a fraction of what it used to be and service is better than fully autonomous driving.