Agreed, endgame (all cars self driving) it's gonna be better. But when there's a mix on the road, I imagine a lot of awkwardness. I feel like they should throw a little LCD panel on each side of the car so it can just display a message like "yielding to pedestrian" or whatever.
Mercedes has spent some thought on this. They propose having LEDs in the front of the car that colour where it sees pedestrians, so you know if you've been seen.