2) Engine failure is not a big deal, it just means coast to a stop on the side of the road with hazard lights on. Blowouts are a little trickier. But what about unusual stuff like hitting a deer? A wheel falling off? Or another car drifting into the side of our car on the expressway? Those are tricky but not truly rare. This is an area where implementors will need to compete yet purchasers will have a very incomplete view of the relative performance of cars on the market (it's not a single number like HP).
3) Hitting a pole instead of a person is an easy choice. Yet one that many humans would not be able to make quickly enough. I think autonomous cars will outperform human drivers in "moral" decision making quite early on.