I don't see autonomous vehicles having a huge impact on the mode share of urban areas. AVs will suffer from the same geometric inefficiencies that regular cars do.
Well, presumably the SDW would be available to scale down (or up) to the number of passengers involved. The vehicles wouldn't be the typical 4 door sedan that people drive alone in today.
And in a fully connected state, distance between vehicles could be minimized while still maintaining decent speed and things like traffic lights could be minimized or eliminated entirely.
A lot of this is just theoretical though and yes the legal issues will be a problem.