Your dog can reliably detect objects, judge distance and avoid them.

That's all the person is saying. Simple animals can use only vision to do what we're using lidar and radar to do. But neither camera, lidar nor radar or any combination of them guarantees that you'll be able to make a computer drive a car in all situations.

For me, intuitively, the problem of reconstructing a distance field from cameras must be way harder than say, trying to predict what a person on a bike will do next, or detect road lines on the road in heavy rain or snow. So it seems very likely that an "AI" capable of driving a car in all situations would be powerful to not need lidar or radar (though I don't see the point of dropping radar, as it gives you some ability to "see" around objects which can make cars better than humans)