This isn't a flawless test run. You see the vehicle slow down unnecessarily for people running by the roadside (about 1:30 in), for example. It's also uncertain how well this sort of demo would work in less than favorable conditions, such as snowy weather or nighttime drives on poorly-lit roads. However, it's still impressive. The car is sufficiently aware of its environment that the driver doesn't have to touch the wheel once, even in relatively complex situations.
This article by Jon Fingas originally ran on Engadget, the definitive guide to this connected life.