What you're missing is that the dancing cars doesn't represent a limitation in the visualization code -- it represents the fact that internally, the AP system does not know where the neighboring cars are. You think AP knows exactly where they are and somehow the GUI can't get it straight? That's possible but Occam's Razor says otherwise. It is reasonable to hope that HW3 may improve AP's model accuracy and stability, which is what the original post was about, and that would be a meaningful achievement and would improve safety and performance of AP, independent of the fact that it would also make the GUI nicer -- that's just a nice side effect.
OTOH, it's also reasonable to worry that no amount of extra computing power or model refinement is going to help because fundamentally they are trying to do something essentially impossible -- determine the precise location of a vehicle in 3-D space given a partial view of it in one side camera. I can actually prove that this is impossible to do correctly in all circumstances, though that proof is not particularly relevant to practical real-world performance. In principle, they could make this reliable in typical conditions (setting aside non-ideal conditions or active attempts to confuse it) to some level of 9's. In practice it is a difficult problem and my guess is that dancing cars, especially when everybody is at a stop, are here to stay.
This might be a good time to point out that EAP scared the crap out of me this morning when it decided that a vehicle in the neighboring lane was suddenly in my lane and slammed on the brakes. I really hope they can fix this somehow.