Authorizing drones to fly in US airspace is hardly insanity. There are lots of commercial (and hobbyist) uses for drones, and I think it's great that there will soon be a way to pursue them legally.

There are obvious concerns about the the use of drones by law enforcement, etc., but those can and should be dealt with separately. You don't control abusive surveillance by banning technologies, whether that be drones or cameras or microphones or GPS radios or whatever. You control abusive surveillance by banning particular uses of those technologies, particularly by the state.