I don't think it has anything to do with hysteria.
The CAA rulings forbid the overflight of many buildings, people, etc. etc. and yet we still see idiots doing just that on U-Tube, some of which have had visits from the CAA and closed down. Such behaviour might have triggered the creation of the consultation perhaps.
I think the consultation is important and the more numbers of responsible pilots that complete the form might insure that we can keep flying with perhaps less strict legislation in the future.