This is a balancing of legally protected interests [Güterabwägung] between privacy and censhorship. Independently of what the law may say, many Germans are strongly biased towards privacy here. Be also aware that in Germany the strong US-American concept of "free speech" does not exist; the laws that do exist are weaker.
> Given that, however, if someone asks me not to take their picture, I first give them the option of receiving a copy for their own purposes, and if they decline, I respectfully delete.
Why not ask for permission instead of objection? (even if, as you claim, the formal written law may be on your side)