This incident shows that there are big limits in what driverless cars can currently do. Humans can see someone walking along not paying attention and anticipate that they may cross into traffic. Humans will slow down or take evasive action to avoid interaction with the inattentive pedestrian. The driverless car cannot do that. The driverless car will only take action if a pedestrian enters the roadway. It cannot tell from body language what a pedestrian may do and can only react when it is too late. Driverless cars have tons of other limitations. They are not very good at driving in the rain, fog, snow and ice. The real efficiency and safety of driverless cars is the ability to communicate with each other and drive cooperatively to minimize traffic delays and maximize fuel efficiency. That system is really just in development and has major cyber security issues.
Driverless cars are really just in their infancy. There are a lot of people in the auto biz talking up a storm about how close the technology is, but it really isn't. And this incident is going to raise a big issue: should driverless cars be allowed to do public road testing without any regulatory oversight? Auto manufacturers use closed courses to test new vehicles before road testing them in the public. Should regulators require driverless cars to pass some sort of test before allowing them to be tested on public roadways?