I definitely agree with your point here.
That said, I don't know if the average human drives acceptably, and I'm very skeptical of a "99%" estimate, but I will say that I would prefer a fleet that consistently drove at the 40%ile of human quality vs. the current human fleet that follows the normal distribution.
If self-driving cars reach 40%ile quality, and enable us to stop the 20% worst drivers from driving (or average drivers when operating at 20%ile due to being drunk or tired), that'd be a huge win for safety.
Right now it's socially unacceptable to increase the difficulty of getting your license, or to take it away for poor performance, because cars are a necessity or near-necessity in most places. If we could provide self-driving vehicles as a fallback, perhaps we could make it easier to permanently lose your license than—checks local laws—repeatedly killing people by driving while intoxicated[0].
[0] https://www.idrivesafely.com/dmv/indiana/laws/dui-and-dwi-la...