Hardware performance is not a problem for Level 5 autonomy - the software is. If Tesla insists on deploying full self-driving capability in the next couple of years, they will be litigated out of existence. We are a few decades away from autopilot to "understand" what it is doing. Right now it is just parroting the most common scenarios. This may be as good or slightly better than the average driver, but it still will result in many deaths, if deployed in hundreds of thousands of cars. Unless Tesla somehow shields itself from legal liability, it will be sued to oblivion.
I don't think so. It's not hard to make an algorithm that drives slower/extra careful when facing unusual circumstances. It's the same thing human drivers do btw.
No it isn't! I often react to bad situations not by slowing down but by speeding up, changing lanes, going on to medians--or even grass one time, you name it. Driving defensively is so much more than not tailgating the car in front of you.