> I honestly though(t) Glass would have done better if it had no recording capabilities built-in. It would have substantially reduced the creepiness factor.

Outside of the tech community this is a distinction I imagine few would make - most people upon seeing a camera are going to not unreasonably assume it can record. I still see large numbers of people taping over their laptop webcams even when they are turned off.

I think the simpler explanation is that strapping a camera to your face is simply inappropriate or off-putting in some social settings for many people.