So the reason it was a big deal is because it was a huge fatality. Tesla drivers are generally a pretty safe bunch. Statistically, if autopilot hadn't been engaged, that death would not have occurred. Autopilot makes Tesla drivers less safe, not more safe.
Also, the government is doing self driving industry a huge favor. These fatalities could screw over the whole industry if they get out of hand. Musk is giving self driving a bad name.