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They absolutely obey traffic laws and end up doing dangerous things like trying to merge onto interstates at the speed limit, rapidly stopping when traffic lights turn yellow, that sort of behavior. Human drivers expect a certain amount of leeway from other drivers, human reasoning, and driverless cars don't provide it, robotic programming.

BINGO!! All the intelligence / AI built into driverless cars will never be able account for all the different variables that are created in every day driving. They're programmed to follow a set of rules, and PEOPLE don't always follow those rules and sometimes for damn' good reason - to avoid having an accident.

I've also lost count of just how many jaw-droppingly-stupid things I've seen people do on the road that create opportunities for accidents/someone to lose their life. Just when I think I've seen it all, I haven't. I've been driving for 40 years.

I’ve attributed much of the crazy driving I’ve seen over the past decade or so to being too absorbed with the GPS. It tells them to turn, they turn, no matter how many lanes they cross. They miss a turn, they stop dead in the middle of traffic. If I’m traveling somewhere unfamiliar and need directions I get them beforehand and then try to anticipate the need to change lanes for a turn. A lot of people just set it and go, apparently.

Exactly. Not only do human drivers not strictly follow the rules, they don't even follow the same rules (or use the same parameters) consistently. Sometimes its even just a feeling - man I've slipped through a lot of yellows today, I better not do that again, my luck will run out...

As you say, even with the best rule sets...you (or the car's guidance system) is going to run into unexpected situations. People doing the screwiest most dangerous things. That's what defensive driving is all about.