When the car is driving, after a while your going to start trusting it and get complacent and pay less attention to the road. In previous incidents this has included watching DVD's, or climbing into the passenger seat while the car is driving.
The problem comes when the car does something so absurdly stupid that a human is frozen thinking "what the hell" before getting to the "I need to take control, I need to stop, slam foot down on brakes". That takes time, and when the car is moving at 70mph you don't have it. 70MPH is ~30 metres per second. If you spot the problem 200 metres away, you have ~6.6 seconds before impact. Since it takes 75 meters to decelerate to a stop from 70mph you have a hair over three seconds to realise that the car is going to kill you, and go for the brakes.
It takes one second for an average driver paying attention to notice a problem and hit the brakes. If your expecting the car to react because it's driving, by the time it hasn't reacted as you expected and you realise you need to take control, in most cases it's already going to be too late.
This is well demonstrated in the video, at six seconds you can notice that the Tesla is alongside a car under human control. Note the differences. The car in the lane next to him under human control notices the problem, checks his surroundings and then moves over a lane and considerately slows down to allow the Tesla driver to pull in front of him.
He finishes doing this at point the Tesla driver realises he needs to take control, a second later smoke comes from the Tesla brakes as the driver picks the simplest route and slams on the brakes as he doesn't have time to evaluate all possible courses of action (which even at this point include switching lanes, but he doesn't have enough time to consider this, check his surroundings and discover that the surrounding traffic has left him room to escape) Hence, brakes applied. Too little, too late. He hits.
The human driver drives past the "AI" created crash 4 seconds later having slowed down rather more considerably than the Tesla simply to allow it maneuver room to escape.
One can point to accident rates, however these will rise as more self driving cars end up on the road and run into conditions like this. It also ignores that the majority of accidents at the moment are had by inexperienced and arrogant drivers, mostly within their first few years of driving when racing on the public roads and then discovering a tree or ditch. I would suggest though that even if self driving cars did away with boy racers, it would simply distribute the fatalities more widely through accidents like this that a 16 year old learner wouldn't have committed. :/
I'm quite happy with adopting some of the useful technology like automatic braking (which has the possibility of all but eliminating the most common UK accident, the rear end shunt in traffic) but personally, I'd be happier driving myself.