I used to work on automatic driving. I ran Team Overbot in the 2005 DARPA Grand Challenge. (We lost, but we didn't crash into anything.) So I'm painfully aware of the problems of automatic driving.
You need to be both looking at the road with cameras and profiling it with LIDAR. (Or terahertz radar, once that gets going.) It's not enough to just sense the car ahead. You need to be able to detect potholes, ice patches, junk on the highway, small animals, and similar problems. We could detect and avoid potholes back in 2005. Since we were doing off-road driving, that was a normal driving event.
The reason for a high-view LIDAR is that you want to see the pavement surface ahead from a reasonably useful angle and get a 3D profile of the road ahead. Google uses the Velodyne spinning-cone LIDAR scanner, which is a lot of LIDAR units built into one rotating mechanism. That's a research tool. There are other LIDAR devices more suited to mass production. Advanced Scientific Concepts has a nice eye-safe LIDAR which can operate in full sunlight. It costs about $100K, but that's because it's made by hand for DoD and space applications. The technology is all solid state, not inherently that expensive, and needs to be made into a volume product. (Somebody really needs to get on that. In 2004, I took a venture capitalist down to Santa Barbara to meet that crowd, but there was no mass market in sight back then. Now there is.)
You can only profile the road out to a limited distance, regardless of the sensor, because you're looking at the road from an oblique angle. Under good conditions, though, you can out-drive the range at which you can profile the road. That was Sebastian Thrun's contribution, and won the DARPA Grand Challenge. The idea is that if the LIDARs say the near road is good, and the cameras say the far road looks like the near road, you can assume the far road is like the near road and go fast. If the far road looks funny, you have to slow down and get a good look at the road profile with the LIDARs.
Automatic driving systems have to do all this. "Driver assistance" systems don't. Hence the "deadly valley".
That's just to deal with roads and static obstacles. Then comes dealing with traffic.