Also iirc current LIDAR hardware is rather large and needs to placed in a fairly open and visible position. The HN demographic may not appreciate this as much as they should but looks are really important when it comes to selling a car, a LiDAR set is unsightly. LiDAR-less maybe the only market viable option.
I don't think so. Being able to go home drunk together with friends at night without a taxi sounds like a feature everybody would love while there's no better solution than having an ugly LIDAR.
Elon Musk is probably right that in the long term it won't be needed, but those few years count a lot.