I agree with you on what the law currently states.
It is what it is.
But, I think it is wrong.
And, I don't think it is Constitutional for them to deny a so called "hobbyist" the right to profit from his hobby by requiring him to jump through bureaucratic hoops. The business side of this has nothing to do with safety.
The FAA should limit their concern to "safety in the air" and not "our right to do business".
It's not far (in principal) from the FAA trying to tell a neighborhood kid that he can't start a lawn mowing business without a license, "because his mower might throw out a rock and kill someone." As if having a license would make it any safer.
And they are not doing us a favor by denying us our rights. We must fight for them or lose them.
When you drive your car down the highway for fun do you have a license? When you drive a vehicle for commerce does it require an additional endorsement/license?