If Uber loses this they probably won't be able to hire from Google, they will have to do "clean room" implementations, and this will all have to be done on the up and up with documentation and proof that whatever product they come up with was entirely started after the ruling with no use of anything that could have come from Google or Waymo. Not only will that all be a huge expense, it will be practically impossible to compete with those barriers constantly looming over the R&D team, not to mention all the extra legal red tape.
That is the crushing blow, not that they can't use LiDAR
The parent's point was that, for driving, the "natural" human way is still better along one relevant dimension [1]: how much sensory data is required (SDCs need a lot more).
SDC engineers would regard it as an improvement if they could get SDCs to work using only the sensory data that a human would get. The parent was saying that Uber could show superiority by similarly doing more with less.
[1] Humans also drive with coarser control over the car i.e. no direct computer interface, just gripping the wheel and pushing the pedals.
Passive sensing lets your eyes see stars and comets: long range, power efficient, avoids sensor conflicts with other objects.
Imagine being able to see heat signatures at night, or through obstructions.
This is the kicker. Lidar allows companies to make up for a lot of the current shortcomings of state-of-the-art computer vision.
As to how easily Uber could advance state-of-the-art computer vision, CV is an academic field with decades of research efforts built up already. To be fair, CNNs are still young-ish in terms of producing results, but Google, FB, etc all have better teams than Uber in this area. The fact that every major self-driving car project except Tesla is using lidar says a lot about how insiders see the first-to-market strategy playing out. Relying on pure CV at this point is kneecapping yourself.
I'm far from an expert on the self driving car race, but I think even if Uber had to abandon LiDAR altogether it wouldn't mean it would be impossible to approach the problem in a different way. And it isn't clear that if the injunction were granted they'd have to abandon LiDAR altogether -- it may be that they could try a slightly different approach and/or develop a second firewalled team from the one tainted by Lewandowski.
It would surely be painful but I don't see why it would mean shutting down the self driving car project.