- Autonomous cars will improve traffic because stopped cars can start going at the same time at an intersection -> Then you have no safety distance. And while theoretical improved reaction times mean you might need a bit less distance, the quadratic term comes from the needed breaking deceleration, not the reaction time.
- Autonomous cars will reduce congestion: they can't if they are supposed to drive around empty either to park somewhere else or to get to the next person to transport. On the contrary, they will increase congestion.
Note also that I don't buy the "work" inside "very small cars". It's not just that having to drive prevents you from working. Also the overall comfort while traveling isn't good enough outside of trains or planes for anything but some tiny amount of work.
I am on board with the benefits for old, disabled, tired and drunk people though. Also, I do accept that they will prevent a lot of accidents and deaths.