When you walk down the street, people might look at you and imagine you in ways you don't like. They might whisper about you to their friends. They might write a story where you're the villain or the fool. They might draw an unflattering picture of you. You might experience anxiety or fear or other "psychological harms" worrying about any of these things happening.
I have compassion and sympathy for the fears, anxieties and discomforts people might experience from worrying about how other people imagine them, or use their likeness in works of fiction. But that sympathy doesn't mean I want the government to police people's thoughts, stories or art.