I don't see why not. We have centimeter-level GPS. It's true you maybe can't always rely on GPS signal being there, but you could also install devices on traffic lights that would allow cars to precisely locate themselves at intersections, so they stop at the correct position, etc.

What I think is that self-driving cars may also force us to confront ways in which real-world driving environments are inadequate, so that we can make them more adequate. For example, there are intersections where stop signs (or other signs) are present but not visible. Humans know they have to stop there, so they stop anyway. Self-driving cars could systematically find and report these locations, and might get the city to do something about them.