there is a big difference between seeing something, and having a permanent recording of it. also, only a few people see what the kids are doing at any given time, and none of them see anything happening at home except the friends coming over. so when something embarrassing happens the difference is between a few neighbors seeing it vs all of them.
there are enough examples of nosy neighbors in the US calling the police on things they don't like. look up free range parenting right here on hackernews.
noone is going to bother about a few kids filming themselves spraying graffiti at the local park, except some people who live at the park.
if an algorithm amplifies local activities to everyone around, then the wrong kind of people will find out.
it's the very definition of gossip that is being facilitated here. the assumption that when something is interesting for a pew people, it's probably interesting for everyone else in the area.
it was probably a similar algorithm that motivated people to turn into lynch-mobs in some places in asia.
it's likely this kind of realization that spooked the OP.