The crash you referenced occurred in 2016 when they were using radar on the cars and I don't believe they were yet using raw photon counts nor did the NN have any voxel-based memory as it does now.
The big limits of LiDAR are cost, more than anything. There have been dozens of public driving trials where from a functionality level the answer has been positive (apart from traffic lights, the bastards), but nobody wants to buy a solution with a six figure BOM, before integration.
"Tesla later said that during the crash, Autopilot’s camera could not distinguish between the white truck and the bright sky."
https://www.nytimes.com/2021/12/06/technology/tesla-autopilo...