That actually sounds like a reasonable response. Driving assist means that a human is supposed to be attentive to take control. If the system detects a situation where it's unable to make a good decision, dumping that decision on the human in control seems like the closest they have to a "fail safe" option. Of course, there should probably also be an understanding that people are stupid and will almost certainly have stopped paying attention a long time ago. So, maybe a "human take the wheel" followed by a "slam the brakes" if no input is detected in 2-3 seconds. While an emergency stop isn't always the right choice, it probably beats leaving a several ton metal object hurtling along uncontrolled in nearly every circumstance.
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