I think the answer is probably a little bit of both. Since this is a promotional video, it seems likely that this is in specific areas/times that were less complicated. I mean, take for example the self driving video Tesla made a few years ago [1] remove the legal need for someone in the diver seat, put some passengers in it while driving that specific route, cut it with some upbeat music, and you now have the Waymo video. On the other hand, if it's good enough for specific times and areas, that's still self-driving and still useful, even if not as useful as it could be.

[1] https://www.tesla.com/videos/autopilot-self-driving-hardware...