The first offense for texting while driving should be $1,000 and one week in jail.
Ratting out people is not the answer (for practical reasons as many have pointed out). Not to mention I freaking hate tattle-tales (my kids, when they were young, got timeouts for doing something wrong - but if a kid told on a sibling, the tattle tale got an even longer timeout).
Technology will indeed help and relatively soon (probably more than 5 years, but not much more). Text to speech technology (and vice-versa) combined with location sensors combined with mobile carrier and auto makers who will be compelled to auto-disable any phone's texting/emailing capability when that phone is near the driver's seat. But using voice-only "texting" will work just fine. Or text-to-call conversion (if someone texts you, they get a message back that you're driving and the phone will offer to call instead).
Cars are incredibly, insanely, dangerous things, far more dangerous, statistically, to the average law abiding person than, say, handguns. Flinging a two-ton thing around town with lots of pedestrians around, or at speeds over 60mph on the highway... it's pretty crazy. We're used to it, but it's still nuts. I think most people don't really respect just how dangerous driving really is.
Having said all that, with respect to self-driving cars, they will have to pry my steering wheel from my cold dead fingers before I'll give it up. I get far too much joy from driving. And I'm not alone in that. Fully autonomous roadways are a long way off, not necessarily due to technological hurdles (although some remain), but due to political pressures.