IMO drones should yield to manned aircraft. Currently, there are defined rules about rights of way for manned aircraft. However, even a manned aircraft that has the right of way is going to do everything they can to avoid a collision, because it's their ass on the line.
Since both aircraft have a strong incentive to avoid collision, there are fairly few mid-air collisions.
Now they want to give drones the right of way with no skin in the game. They can just go from waypoint to waypoint, never looking for anything, and if they hit something, they won't die, and they won't even get sued. If they're feeling particularly callous, they could even sue the other pilot's estate for the cost of their crashed drone.