With things like this, it's important not to rush to judgment. We don't know whether the pedestrian stepped out in front of the car or not, and we shouldn't assume a variation of the Principal Skinner meme:
http://i0.kym-cdn.com/photos/images/original/000/645/713/888.jpg
It could be very well that the software and/or hardware failed. If it did, I'm sure the people developing autonomous driving will eventually fix the bug, because they're very bright people.
At the same time, I'm concerned that we're putting too many of our eggs in one basket with self-driving cars. It seems we decided, at some point, that encouraging humans to be better drivers was impossible and that technology had to "save" us from ourselves. I'm not against self-driving cars, per se, but I don't like the fact that they take away control, and I'm still not 100% convinced that the technology is the saving grace that many people seem to think it is.
My philosophy is that we need to be the change that we want to see in the world, rather than sitting and waiting for technology to create "utopia" for us.
Ringo