While I'm surprised the sensors on the car didn't catch the cyclist, I pretty sure if I had been driving and paying full attention I would have hit the bike too.
Personally, given this video, I'd still be totally comfortable with a self driving car on the road with no safety driver (who clearly didn't make a difference here anyway, not that they could have).
I agree in that I consider the safety driver to be irrelevant in this situation, because of the reaction time needed to take control, nevermind hit the brakes, nevermind after a complacent state of mind.
But as others have pointed out, it's hard to tell what the driver could have seen just from the dashcam video, which for starters, has a much less dynamic range than human vision. Because in the accident scene photos/videos, the ambient street light is much more visible [0]. I'm guessing driving down that Arizona road at night can't possibly be as pitch dark as the camera shows it, given how that area seems to be used for entertainment venues/festivals.
Personally, given this video, I'd still be totally comfortable with a self driving car on the road with no safety driver (who clearly didn't make a difference here anyway, not that they could have).