The whole saga has good, bad, and meh elements to all of it.
It's good that the question of auto insurance is coming up. I imagine that many of these drivers are painfully unaware that they are in serious insurance limbo. If someone's a de facto Uber employee, then yeah, Uber should pay for damages that the driver causes. It's definitely an exaggeration to say that Uber will "leave a trail of bodies in the street", but it's also unfair that the victim gets screwed here (because there's no chance in hell the driver's personal insurance will cover this).
It sucks that the odds are so stacked against them for providing (what at least used to be, I rarely use them nowadays) a good service. I remember being in SF a couple years back and trying to hail a cab for 30 minutes before getting an Uber in ~5 minutes. It was really shitty, and Uber really came through in the end. I was glad to pay the price difference.
Regardless of what happens, there's a lot of interesting ideas here that hopefully get noticed. Surge pricing's an interesting idea. Whereas taxis sacrifice reliability for relatively stable pricing, I'm glad there's a competing service that sacrifices stable pricing for reliability. It lets you make the decision about which is more important, and I'm sure we've all been in situations where getting somewhere quickly was worth the extra money.