most of my neighbors think it's a really cool toy, even with the gopro attached to it. let them know that the camera that we are able to use on this thing can not zoom in to spy on anyone. if they have doubt, show them a clip of what the gopro can see. also mention that the flight time is only around 10 min and not really enough to be spying on anyone. I have an lcd backpack handy so if anyone asks, i can just show them. most people who are worried about their privacy has their fears hyped up by the media who have blown this whole privacy thing out of proportion.
I had a local news station do a segment that inflated such fears when they posed the AR-drone 2.0 as a spying craft. they considered being able to look over the fence of a neighbor as spying. if i wanted to look over into my neighbor's back yard, it would be so much cheaper to use a ladder not to mention infinitely more clear than what the AR was showing. they also posed a hypothetical question of someone controlling the AR and flying up to your window and looking in or going into your house. really? with the noise that these crafts make, one must be deaf not to hear it (i have double pained windows and very good insulation and i can still hear the phantom buzzing outside). also for the AR, it's controlled by "wifi" so good lord knows that if there is any kind of barrier (walls and fences) the craft's range becomes so small it's practically unusable for that purpose.
Basically it is up to us to educate people on the truth about these crafts since we can not rely on the media. personally, I am more worried about the safety issues with people taking their crafts too high or into a high traffic area posing risks to commercial flights with real people in them.