The company sucks (a non business or technical term I know) and their cars are dangerous to more than just their owners.

Now that it's clearly out in the open based upon testimony on the Hill yesterday, what should Toyota do?

First they should hire an outside independent set of technology and software experts -

Candidate companies should be approved by an independent organization for the work, possibly the NHTSA or ODI prior to them being hired.

Then they should identify and publish their findings for everyone to see.

At that point they should recall all the vehicles with the problem and fix them.

This is not rocket science, unfortunately Toyota is just making it more difficult on themselves and the public by not approaching this problem correctly.

I think they have lost their only opportunity to do this by themselves, independent technical leadership and oversight is needed to determine the root cause(s) of these problems.

In the meantime they are toast.

P.S. - Doing recalls when you don't know the root cause an example of insanity. Doing the same things over and over and expecting different results.