If LiDAR was a solution, we would have driverless LiDAR based vehicles. No one has solved driverless though.

If you could use LiDAR well enough then it would solve the problem. Of course, if you could use vision well enough it would solve the problem too.

The big limits of LiDAR are cost, more than anything. There have been dozens of public driving trials where from a functionality level the answer has been positive (apart from traffic lights, the bastards), but nobody wants to buy a solution with a six figure BOM, before integration.

Lidar also has problems in rain, fog, snow, etc… FLIR would actually be better