Actually, the back-pedalling may have been Tesla's fault because of the negative publicity generated by AutoPilot.
The problem with self-drive is that it won't be ready until it can demonstrate that it is virtually infallible. Rational thinking may suggest that it only has to be as good as the average driver to produce a major advance in road safety - but unfortunately, rational thinking won't have much of a role in the public and legal acceptance of self-driving.
For a while, every incident involving a self-driving car is going to be international front-page news. The first court case over a third-party death caused by a self-driving car is going to be a media circus. Adoption of self-driving cars is going to depend on changes in the law on liability and insurance (are you going to get into a self-driving car if you're liable for the consequences of bugs in Tesla/Google/Apple's last software update?)
Reality is, our pathologically risk-averse society has developed an irrational blind spot when it comes to letting a fallible human control a ton of metal hurtling around at 70mph (the accident rate is actually quite low, considering - turns out that ape brains evolved to tarzan through the trees are really good at it). That free pass isn't going to be extended to robots.
I think we're currently at the point where self-parking, lane-keeping, cruise control, auto braking etc. are at the limits of what can safely be done without causing driver complacency. The industry now has to make a quantum leap[1] to a system which allows the driver to kick back and start playing Pokemon - because typical drivers are not going to pay attention to the road and stand ready to intervene while a car drives itself. What we have now is a good proof-of-concept (and maybe a slightly better lane assist) - it still has a long way to go before mass acceptance. There are significant technical challenges and significant cultural/social challenges.
I'm sure it will come eventually, but its not going to be pulling in profits next year.
[1] (in the correct sense of the term - i.e. no intermediate states)