He's rich. Someone will find an excuse to sue him, public easement or not. (Not saying they'll win, but they will sue.)
I actually not on Khosla's side of this issue, but in the current lawsuit-as-lottery-ticket climate, liability concerns are in fact a reasonable issue.
Is it really better to be sued by a bunch of people plus the state of California like he currently is than to potentially at some point in the future be sued by some idiot with a very weak case?
I also do not think that it is a good thing to make an enemy of the state government if he wins the current set of lawsuits.
There shouldn't be any liability concerns related to the use of a public easement.