OK, I'll give you that some people consider that murky. My read is that something explicitly prohibited by part 107 is prohibited for everyone, unless is explicitly allowed in the text of the exception ( USC 44809). I'm not a lawyer, so am not really in position to debate. But for a newcomer who wants to follow the rules, I would not recommend flying over people without advice from someone who is a lawyer. Oh, and by the way, the Pilot Institute video also says that flying under the recreational exception does not get you out of the flight over people rules.
It works the opposite of that. As long as you follow all of the statutory rules for the limited exception for recreational operations than none of the part 107 rules apply. There is some overlap.
Think of it like this. Part 107 applies except if you meet all of these requirements.
The FAA spells this out quite clearly at the link below and here are the statutory rules. Notice that none of them mention flying over people.
www.faa.gov
1. Fly only for recreational purposes (enjoyment).
2. Follow the safety guidelines of an FAA-recognized Community Based Organization (CBO).
Note: We have not yet begun officially recognizing CBOs. Recreational flyers are directed to follow the safety guidelines of existing aeromodelling organizations or use the FAA provided safety guidelines per Advisory Circular 91-57B.
3. Keep your drone within the visual line of sight or use a visual observer who is co-located (physically next to) and in direct communication with you.
4. Give way to and do not interfere with manned aircraft.
5. Fly at or below 400' in controlled airspace (Class B, C, D, and E) only with prior authorization by using LAANC or DroneZone.
6. Fly at or below 400 feet in Class G (uncontrolled) airspace.
Note: Flying drones in certain airspace is not allowed. Classes of airspace and flying restrictions can be found on our B4UFLY app or the UAS Facility Maps webpage.
7. Take The Recreational UAS Safety Test (TRUST) and carry proof of test passage.
8. Have a current registration, mark (PDF) your drones on the outside with the registration number, and carry proof of registration with you.
9. Do not operate your drone in a dangerous manner. For example:
-Do not interfere with emergency response or law enforcement activities.
-Do not fly under the influence of drugs or alcohol.