I predict that by 2030 none of the top 10 US car manufacturer will offer self driving in their cars (except for simple autobreaking). Even those manufacturers that offer some self driving now will stop offering it by 2030.
Disclosure: I worked for an Auto OEM but didn’t have any knowledge or communications with any folks working in the space.
Or alternatively, allow self driving only on highways and such, where it's much safer?
I don't think progress is stopped that easily
As the story illustrates, there might be situations were expecteded litigation is worth it. I'm not saying this is morally right, but companies will try to maximize their profit anyway, even if there are (calculable) risks involved.
In the case of self-driving this might mean being a profitable car manufacturer vs becoming a niche, enthusiast car producer for people who still enjoy driving as a leisure.
Here is one of essay on this: https://studymoose.com/a-utilitarian-argument-in-the-ford-pi...