Critics of the first iPhone were both right and wrong. The battery life did suck, it wasn't as secure, and you couldn't type emails/texts as quickly. But what it COULD do turned out to be much more important that what it couldn't do, which in turn created so many more uses (and users) for smartphones. Aesthetically, it blew other phones out of the water.
So in many ways, I do see why Telsa is betting the farm on autonomous driving. Things like instant torque, zero tailpipe emissions, less engine maintenance are nice, but ultimately aren't enough to make EVs more than a niche product For the market to take off, they really have to transform transportation in the same way that iPhones transformed phones. But having said all that, Tesla isn't there yet on that piece and that means design/aesthetics will be crucial to charging a premium price for a premium product.