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Private self-driving cars will make our cities more livable
City planning centered on humans is what will make cities more livable. Transportation should be subjected to city planning and not the other way around.
One of the main reasons people use transportation is access to services or goods. City planning can help dramatically reduce the need for transportation.
Cities planned entirely around cars (for example, in the Fordist-era) are today considered to be a big mistake.
Vox: Highways gutted American cities
are lobbied by big companies
with economic interests, they are not intended to make cities more livable.
The vehicle technology is an inadequate 'unit of analysis' for this question, which is systemic in nature.
The geometric limitations of private cars will still apply regardless of the driver. Mass adoption of Private vehicles pushes finite city space from uses devoted to livability towards transport.
City-planning centered on humans is a different question, and not in contradiction with self-driving cars improving life in cities.