I had a longer reply but lost it to an accidental F5 press. The gist of it was that I agree, but that I was thinking more about the decision whether to brake or not - which has to happen almost instantly. What I also now recall is that that is a problem they already tackled with the 2005 DARPA challenge. They had a problem of ghost rocks / ridges appearing in their Lidar data because of the vibration of the sensor: a small vibration and a spinning sensor means that you get vertical displacement that isn't there. Which gets worse the farther away you are. So what they used was a temporal check - was this object here in this shape a millisecond ago? A second ago? If not, the probability that it is an actual thing now is deemed very low. The same logic applies to a suddenly-out-of-nowhere car. It might dazzle the car for a second. And I found these two pretties! First one is from Ottawa. 
