It's also not particularly clear that the costs will drop rapidly to zero or even to a level that leads to mass adoption (see air travel at Mach 1+, Segways...).
If I had to compare, I expect the change to be more akin to what Excel has done to paper spreadsheets.
Good sensors aren't cheap, the optical and mechanical elements aren't likely to drop in price soon. Only the computing power is getting cheaper, but harnessing it isn't particularly easy (we're not getting better at programming as quickly as we're making faster chips).
If you need another example, consider automated cleaning robots. It's a considerably simpler problem to solve, and they're still only a marginal product. At the moment, autonomous tech is only really used in well-controlled industrial environments. It will surely break out of there progressively, but chances are it will take a while.
So if all of America's 11 million professional driving jobs were to disappear over the span of a decade, it would be a blip, not an apocalypse.
It's still NHTSA level 3, not 4 or 5, but it's a major step up from pretty much anything currently available and will be in consumer's hands. Even more so when the Model 3 comes.
I think you'll be surprised how fast this technology will exit the labs. Just that Google has decided to brand around it is a big indicator that they're growing confident.
The "goal", such as it is, is to have a technology worth using. It's not to transcribe whichever comic book utopia someone has in mind.
If she had been in an automated car, it would have almost certainly have stopped before the collision.
And what's wrong with slowing/stopping for a plastic bag? How often do plastic bags really sit in the street shaped like babies?