That sounds great for Waymo: I'd love to experience a ride in one and I'll make sure to catch a ride next time I am in CA.
I wonder what it does in common situations, like stop-and-go traffic with two streets joining at an angle, where one has to yield? In that case, if everyone simply followed the rules, the cars in the yielding street would never get through. While I am passive-aggressive myself as a driver, I religiously follow alternating one-by-one from either street "rule", even if I am in a street that has right of way, to ensure traffic moves for both of those and reduce chances of someone overly aggressively moving in from the yielding street.
If it is still passive aggressive in that case, it will work ok while there are other passive human drivers in the road, but would quickly fall apart when everyone drives the same.