Doesn’t have to be total - just in designated streets. One way streets work well enough. It wouldn’t solve the total problem, but I bet it’d solve enough to matter in the city.
I think it would be more like "take a fraction of the space cars get today but dedicate it 100% to the machines to make it as efficient as possible".
So computers driving cars on a one lane road could probably do it more efficiently than humans do today on a 3 lane one.
The idea isn't to give cars more space but rather to give them less and use it so efficiently that you actually get even better results then you had before.
You are assuming that people will reliably follow the law. That's a bad assumption. I've seen people driving the wrong way on one-way streets multiple times. As long as there are any human drivers at all they're going to do stupid or illegal things, and any autonomous vehicles will have to cope with that reality.