the original DARPA Grand Challenge cars were using range of sensors, incl. ultrasound, stereo-cameras setup, and mm-wavelength radar by the team who had the money for it. LIDAR is just easiest to process (to get 3D scene representation of surroundings) and gets the highest bang/buck ratio in its range of applicability. You need to complement it with other sensors to get wider range of conditions covered.
http://youtu.be/EkvazIZx-F0?t=1m56s
Maybe it works only because they use multiple cameras and they don't need too high resolution.