The PoCs on tracking individuals with MAC addresses are old news (and, in fairness, newer iOS devices use random MAC addresses for WiFi probe requests), let alone the user fingerprinting you could do on browsers when people actually use these things. So you've got a database of devices, and then on top of that you start doing facial recognition and gait analysis to collect another set of individual data points. Then you connect devices to people, and you have a pretty nice system for tracking individuals moving through the city, even those with location services and such disabled.
Paranoia? Maybe, but it wouldn't take much for say, Amazon, to start doing this. And Bezos wouldn't be bound by city regulations on citizen privacy.