Obviously Google has been working at the whole self-driving car thing for some time now. But the vehicles they've had on the road previously have simply been existing cars that have been modified as needed.
What they are unveiling here is a car that has been designed from the ground up with the idea that it's going to drive itself. So no steering wheel and no pedals. Which, it turns out, gives you a lot of extra leg room.
As someone who spends about 2 hours (and 80 miles) a day driving, I'm very keen to see further progress with this technology. I can see that the complete absence of a steering while might take getting used to though.