Some of the things you mentioned as not being handled by Google's cars actually are handled, and you can find videos on the Google Self-Driving Car Google+ page

Some of the things you mentioned as not being handled by Google's cars actually are handled, and you can find videos on the Google Self-Driving Car Google+ page that provide visualizations of the car encountering some of those scenarios or similar ones. (some of the others do seem to be unresolved so far, though) You assert that Google can't make this profitable. Why do you think that? If they can make it work well enough, they can be cheaper and more efficient than (probably) any other form of transport, probably drive all taxi companies out of business, and be raking in some revenue every time someone wants to go somewhere, worldwide. (think Uber, if only it were used for every single trip) This could be far bigger than their current businesses.