Self driving cars are probably just going to have to recognize hand signals. That's simply the reality.
The car needs to be able to communicate with people outside of it, or it needs to have a human inside who can drive it.
And yes, I think they are doomed. At least for city streets - I expect them on specially instrumented freeways though.
Do you work in the field? I'm a bit skeptical about that. Waymo's self-driving car seems to do pretty well with things that aren't encoded in maps like road works and unexpected obstacles. I don't see why red lights would be exceptionally challenging to detect.
There are also pranksters that turn traffic lights by 90° to make them face the wrong direction.
Those are hard to map.
This seems to be a decision on par with "depend on left-pad". reliability wise