Well except that there were incidents of cars getting stuck in floods with passengers before they paused the service.

A closer analogy would be ""Chicago O'Hare pauses flight departures due to a winter storm after 3 planes slide off the runway due to ice"

Absolutely I think there will be a disconnect between when people think they should be able to drive somewhere (ie to work in a no-visibility blizzard) and when ideal self-driving cars would allow themselves to operate. Maybe society will adjust to be more flexible to natural conditions, or maybe people will get frustrated and drive themselves into the poor conditions as always.