1. They don't have access to the data.
2. They don't trust those that do.
3. They don't believe that violations in how it is used will be appropriately punished (article clearly disagrees, citing a study).
4. They believe the Federal government will misuse the data, and there won't be a record of the misuse.
One solution is: Make the data a public good. Instead of trying to ban such things, make the feeds accessible to everyone. It levels the playing field.
Bans aren't really going to work in the long run. I could hook up a camera on my property, facing the street, and record and stream. You can do the same. We can set up a common protocol for all such people to share their streams. Municipalities banning this type of behavior will be as effective as banning piracy.
Will society be better off as a result? I seriously doubt it. Some things will drastically improve. Others will get a lot worse. But it's a likely solution going forward.