The article mentions that emergency conditions (a blown tire, obstacles in the road) will remain problems. I'll be interested to see the auto industry's resources brought to bear on it - it's a classic autonomous systems problem. The more you automate, the less your user has to do (that's the goal, right?) so the more bored they get. There's nothing they need to do for long periods of time, so their attention wanders. But the automated system is typically weakest in the kind of emergency situation that the human could better handle, if only the human's awareness was fully engaged in the situation. But in the time it takes for the human to regain situational awareness, the car has already hit the deer.
And yeah, the legal/insurance problems will be a bear.