Then it would apply to a lot more situations. The problem is that the only reason people are that close is that they are recording. If they try to say "no one can be closer than 8 feet" that complicates things considerably.... I mean, I've walked by such situations on the sidewalk and gotten closer than 8 feet, because it was unavoidable without crossing the street. (these situations weren't ones likely to be filmed, though, just typical city stuff like with homeless and/or mentally ill people) But I wasn't just hanging out really closely, as I'd be if recording.
I think they were just trying to address a relatively new situation that was causing them problems.
I don't really agree with this law, but I also don't think your cynicism on that particular thing is entirely warranted.