You say that like those are impossible obstacles. It's been a while since I rode a school bus, but the driver wasn't exactly adult supervision, and there was plenty of vandalism already. If anything, a self-driving school bus would be a positive as it would then allow the former driver to actually focus on the kids.
Not sure I agree with the idea that others could be fooled by where it's going in traffic, given that it's programmed to obey traffic laws.