For avoidance of false accusation, this would be a nice tool. Even if there will be some extra privacy issues which were not applied to drive recorder but applied to the human version of it, I think one can overcome them with some modifications.
By "human version" I mean that a human can wear a tiny recorder 24 hours a day, whether he's in a car or not. I'm not sure whether this sort of product was commercialized yet, although some people proposed that police should wear it during his duty, so that police shooting to innocent citizens will not happen. If the access to the recorder is possible only when it is needed in the court, I suppose this will clear privacy issues.