It's not so much the normal 400' AGL that I'm stuck on. I'm on board with that. It's to keep a 100' vertical buffer between unmanned aircraft and manned aircraft which shouldn't be flying lower than 500' AGL.Why are you so stuck on the exact 400'AGL? To go up the mountainside you have Up To 400' to work with. From 0'AGL to 400'AGL you just have to stay under 400'AGL.
What I'm stuck on is why there should be any difference between FAA's recreational versus commercial flyers with respect to the extra 400' height allowed over structures as long as you stay within a 400' radius of the structure, or why that 400' horizontal distance shouldn't apply equally to flying off the edge of a 500' high cliff.
If manned aircraft need to stay either 500' above structures, or 500' horizontally away, then drones should be permitted to safely use the airspace up to 400' above and within a 400' horizontal radius.
I understand what you're saying here, if the 400' is always measured vertically. But the height allowance extends to everything within a 400' horizontal radius around the structure. I'm not following the logic why this should apply only to Part 107 and not to all classes of drone flyers.
Imagine a 400' rope suspended from the bottom of the aircraft. If at any time that rope isn't touching the ground the aircraft is higher than 400'AGL and in violation. For Hobby you can't use the height of the structure to increase the AGL limit. If it's a 500' high building the UAS can't fly up to the top and over because at 401' they are now in violation.
It does apply equally to all drone flyers in Canada, with the exception that here you're allowed to go only 100' higher above structures and cannot go outside a 200' radius from the structure.
I used to work in regulation enforcement with respect to Motor Vehicle Safety, the equivalent to your NHTSA. We'd get into long battles with lawyers who twisted the wording of regulations to suit their own interpretations. I hate ambiguously worded regulations, or regulations that make no sense.