I totally agree, as a cypherpunk and an EFF/FSF donor (notice the GNU in the end of the video, I bought that from RMS at an auction for a few hundred bucks) I'm bothered by the possible privacy intrusions from glass. At the same time we are trying to highlight the good that can come from glass (see our VizWiz project which is an iPhone/MTurk/CV mashup to help blind users find objects https://www.cs.umd.edu/~bwhite/extra/papers/UIST10-jbigham.p...). One area we are researching is how to protect bystander's privacy without requiring them to "opt-in" so that they can "opt-out" (like Germany does with street view).
We're already working on the next demo, but the one after that (let's say 2 weeks) I'll try to show what we can do in terms of protecting the public's privacy (incidental bystanders). Thanks for mentioning this.