At some point in the future, I expect self driving cars may be extinct, but I suspect it will be market driven, rather than government regulation driven.
There will be a point where no one is buying a car that drives itself, just as many things of the past have been replaced by computers.
Perhaps that will come from some kind of technology that make the whole idea of a car, in any form - obsolete, but may also happen well before that.
One thing that may affect government regulations for making them mandatory - Roads with no human drivers probably have a massively higher capacity than roads do today.
Theoretically, you could have cars travelling much faster than they do now, with mere inches between them, and you could eliminate traffic lights, as vehicles could coordinate with each other and have intersecting vehicles travelling through intersections at the same time, with very little delays.
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