The law is clear.
If you have a human at the wheel, it is lane assist, and automated cruise control.
If you don't like it, then change the law.
The problem is that they've put drivers in the car as backup; they're not supposed to drive or it ruins the experiment. So they won't be ready to take over when needed. One already missed their cue and the car ran a red light...
And I am sick of people who don't understand the law trying to stop this perfectly legal technology from entering the market.
Read the law, and get educated please.
There are 10s of thousands of self driving Teslas on the road right now, in the hands of customers. You can buy one! You don't have to get a permit for them.
http://codes.findlaw.com/ca/vehicle-code/veh-sect-38750.html
They're pursuing self-driving tech in a shifty way - paying a driver to perform backup (in a way that Google has shown can't be done) and otherwise letting an unfinished AI have full-control of the vehicle at road speeds. When the cars make a mistake (run a red) they blame the driver so they can claim a flawless self-driving record.
If they said they were self-driving, and got the permit, they'd be required to log activations so we'd know who was supposed to be in control at the time.