If there were stronger punishments for reckless driving that endangers cyclists, pedestrians and other drivers then fatal accidents would surely decline.

Like the War on Drugs? I haven’t seen any evidence that punishment works as a deterrent at the societal level.

…it’s ridiculous to suggest that any one category of traveler: drivers, pedestrians, or cyclists is any more law abiding than the other.

OK, but it kind of sounded like you might have believed otherwise when you wrote

…in my experience that pretty much every single car on the road is disobeying traffic laws, from going over the speed limit, to not yielding and stopping correctly. The “scofflaw” cyclist narrative is an anti-cycling myth that needs to dies.

To your point re helmets and safety: http://www.helmets.org/stats.htm
The ratio of helmetless to helmeted US cycling fatalities over the last ten years appears to have been roughly 9/1.

The only way this kind of thing will work is if every vehicle is networked and tracking every other vehicle and wheeled object.  They all talk to eachother and harmoniously auto-co-ordinate their choreography with regard to everything else on or near the road.

This is an excellent early step though.

I’ll second Audi as the worst now, though. 

(What point were you trying to make, then?)

Countercitations: 
“Robinson’s reviews of cyclists and control groups in jurisdictions where helmet use increased by 40% or more following compulsion conclude that enforced helmet laws discourage cycling but produce no obvious response in percentage of head injuries.”
“Because cycling is more healthy than dangerous, helmet laws appear to offer net health benefit only in dangerous bicycling environments under optimistic assumptions of the efficacy of helmets.” 
“Cycling in Australia was increasing before the helmet laws were introduced and fell by roughly one-third at that time.”
- http://en.wikipedia.org/wiki/Bicycle_helmet#Science:_measuring_helmet_effectiveness

Anecdotally, my experience indicates that helmets are essential for off-road cycling, but not particularly useful for commuting.

That said, the positioning for this feature is so secondary concern. No driver wants something that’s described as “this system attempts to compensate for your borderline homicidal lack of attention while you turn into a bicyclist how has the right of way,” but that’s what the system (hopefully) does.

You’re right to be upset!

The point I was trying to make is that a technology designed to prevent fatal accidents is a Pretty Good Thing that we should be celebrating no matter who is at fault for those accidents.