I work in transportation regulation. I understand your fear and frustration. What is happening with self driving cars is probably as stupid as you believe. However regulations are pretty reactive and in some ways good regulations should be. You can't regulate what you don't understand and you can't understand what has never been done before.

The best approach is to start small and work directly with a regulator to create an initial trial and evolve the regulatory framework that ensures safety for the trial period. Then that framework can be used for future trials by other companies before being finessed into an official regulation. Then you have something which you know CAN be successfully implemented by companies AND does produce good safety outcomes.

Is that what's happening? It probably was, initially. But as you said the public service is gutted and now corpos are having a wild west free run at this AI car thing. Good luck on the streets, we're soon all gonna need it.