I've struggled with this a little; I live in Australia where the privacy laws are bit more outcomes based, however I recently got on the wrong end of some abusive old jerk who accused my of spying on him - while flying in the public park that he lives adjacent to. He demanded that I show him all my footage or he'd call the police, which I told him he was welcome to do. While I agree that showing these people footage of what we're actually shooting would appease them, isn't our privacy also protected? I asked him to show me his camera roll on his phone because I thought he'd been taking photos of me; he refused because it was private without noticing the irony of the situation.
You know at the end of the day I think we're at yet another frontier of the privacy domain - how many people would have been comfortable with putting their whole life on social media 20 years ago? I think as the tech proliferates, perceptions will change, but it'll take time.
From a more legal perspective, hierarchical legislation doesn't necessarily 'trump' lower level laws, they're designed to be complimentary. In this example, being allowed to fly your UAV under the FAA regulations doesn't permit you to break state based privacy laws - you have to comply with both. As always, both legislation and common law usually lag technological and social advances, so something will always sit in this grey space of 'not really sure how to deal with it'. These things are usually clarified by either a prosecution or a tort, or a successful defence against either. Just hope you're not the test case...