I'd say driving only requires not to handle uncommon situation dangerously. And stopping when you can't handle something fits my criteria.

Also I'm not sure it's entirely AI's fault. What do you do when you realistically have to break some rules? Like here, I assume you'd have to cut someone off if you don't want to wait forever. Who's gonna build a car that breaks rules sometimes, and what regulator will approve it?

If you are driving a car on a public street and your solution to getting confused is stopping your car in the middle of the road wherever this confusion happens to arise, and sitting there for however long you are confused, you should not be driving a car in the first place. That includes AI cars.

In practice, no one treats it as a four-way stop, which makes it dangerous to treat it as one.

Drove through SF this evening. Most people treated it as a four-way stop! I was generally impressed.