Most people wouldn't instantly know how to handle those cases either. Many people would obey the drunk guy. Maybe that's the right thing to do.
None of those are edge cases because every time it drives it will encounter some novel edge case that has never happened before and it will have to perform better than a human.
That's why these things could never be rule based, there are too many small exceptions. When they're not overfitting/able to memorize all your training examples, neural nets learn heuristics, just as people do. Different people learn different heuristics. Granted, they don't have much of the same context about the world that people do, it will take a long time to build enough examples for them to infer all of that. But Tesla's fleet is getting more driving experience every day than you will get in your entire life, and every time they train on one of those exceptions, the entire fleet will benefit.
Don’t even get started with liability. Once you take away the steering wheel the manufacturer is on the hook for every single mistake and every single accident. You’d be insane to be a manufacturer and sign up for that.
If drivers no longer carry their own insurance, this is probably going to be handled by insurance at the manufacturer level, and baked into the price. The insurance will demand certain processes to prevent large-scale bugs being rolled out.
I don't see any fantasy here, just a lot of work.