I used to live next to two schools. In the morning before school the pavement and road outside my house was always full of school kids on bikes. During this time I'd drive with the assumption that at any moment a bike could drive out in front of my car because those kids were nuts and often did.
But to assume this generally just to be safe would be extremely inconvenient. In reality if I see a group of bikers wearing lycra I will assume their competent bikers. While I'll still drive carefully, I won't assume they're about to pull out in front of my car.
If self driving cars operate with the assumption that every pedestrian is drunk and every bike on the road is a 12 year school boy then no one will use them. Do self driving cars try to this currently? If I jaywalked in front of a Tesla is it designed to always be able to stop in time?