When a human is accused of an egregious driving error with serious consequences, it's a discrete problem. When software makes an egregious error, it probably isn't, and simply removing that particular instance of software from the road and paying off directly affected parties isn't likely to be a satisfactory resolution.
To take another example from aviation, two 737 MAX accidents attributed to its software see the entire fleet grounded and very serious questions being asked about its future, and by extension the company's. That entails much more expensive consequences and complex legal cases than car accidents for which humans are held responsible, even though car accidents are much more frequent.
1) Determine damages like we currently do, and manufacturer, which is likely to be the same as the insurer, pays out.
2) Manufacturer has a fixed amount of time to show that they've re-trained the system on the problem scenario and scenarios close to it such that it no longer occurs given similar conditions.
3) Push the update to the fleet, the same accident should never happen again.
If we could do this with human drivers, we would be in great shape.
In real world regulatory environments, Boeing's patch to its MCAS system - which was tractable and trivially simple compared with teaching a software program how to react safely to certain types of human behaviour whilst leaving behaviour in other situations unchanged - is undergoing months of testing and the fleet has been grounded for over a year.
The FAA always takes its sweet time making decisions, mostly for good reasons anybody regulating mass market autonomous road vehicles ought to follow. But what's spooked them here isn't software between a pilot and the aircraft's control surfaces altering the piloting experience (that's been around for a while), but the software making a decision and the pilots being unable to effectively override it...
This is possible in aviation but is typically only done fighter jets where you have vectored thrust, massive control surfaces, and an ejection seat if things go wrong.
If your goal is safety, software-based stability is a very poor design. I think there's a decent chance the MAX won't be re-certified without physical design changes.
The article mentions the General Aviation Revitalization Act. The small aircraft industry was almost wiped out until these protections were afforded. I don’t see how any company could risk unleashing a fleet of vehicles with the threat of uncapped liability looming over them.