I'm delving deep here, but it seems that section primarily states what the FAA will not regulate or "not promulgate any rule or regulation regarding". To my reading, it does not state that operation outside those guidelines necessarily does put a craft under the FAA jurisdiction. I admit I could be reading it completely wrong.
But then if you look at this page[1] on the FAAs web site, it says only that operators are "strongly encouraged" to follow certain restrictions like line-of-sight operation. It doesn't say they have to.
Mind you, I follow all those rules myself when flying rc planes, and prefer that other in the hobby also do. I think they're good rules. I'm just playing with interpretation.