"The other example given was Google cars dealing with cyclists who didn’t obey the rules of the road."
A quick search of YouTube reveals that cyclists like to wear cameras so that they can berate all around them and then place the footage online.
The issue is that it reveals what bad road users cyclists are. Worse still they seem in a hightened aggressive state, and are not averse to beating a happless motorists, even mums with children in the car.
So yea, the software has to deal with that too.