I work for Google, opinions are my own.
I don't know the specifics myself but I trust what you're saying is true and agree those are real problems.
Nevertheless, one of the best things to do when you have a really hard problem is to simplify the problem. It's not as though we have to have fully self driving cars before they're released.
I think what would make a lot more sense is some middle ground where we have certain sections of the road where self driving cars will be able to work well and only allow them there.
Voyage.auto [2] claims to be deploying such cars now. Or rather, their web site contains announcements from late 2018 that they were doing so. Later information seems to be lacking. It's a basically good idea, but they claim an on-site staff of 5 for three cars, so they are nowhere near this making financial sense.
A real problem with self-driving cars is the false-alarm rate for emergency braking. If you're conservative about crash prevention, every once in a while the vehicle is going to detect something it doesn't identify as safe and will brake hard. That's why Uber turned off automatic braking in their cars - "to reduce potential for erratic behavior."[3] False-alarm braking, or even strong braking conservative by human standards, limits customer acceptance.
[1] https://arstechnica.com/cars/2015/05/googles-quirky-self-dri...
[2] https://www.latimes.com/business/autos/la-fi-uber-arizona-nt...
SDC as advertising venue and usage info as advertising data source.
And even when they do make it work, how is money going to be made by someone like Waymo? I don't see a route to the supposed massive profitability that would justify the huge investments being made.