Yea, the way AP1 works is it follows road lines and the car in front, it's basically a fancy cruise control and not "autopilot" in the way we think of that term. If you watch what happened there the road lines kept going right into the barrier and the AP followed the lines right into it.
People should not use AP as a "read a book" type of thing. They should use it just like they use cruise control now, as a convenience device.
Supposedly AP2 is going to be far more aware, and able to handle these edge cases, but it is not there yet.