Earlier quoted context omitted.
Even with a red LED, many people will not recognize Google Glass as a video capturing device. And if this product takes off, what's a person to do if he doesn't want to be recorded and tracked? Imagine sitting in the subway or at Starbucks around 10 Glass users.
Just for argument sake, what's the difference between being recorded on video or being watched by someone's eyes? If you don't do anything noteworthy, no one is gonna care to re-watch that video. How many hours of youtube videos already go unwatched today?
I wasn't suggesting humans will be looking at all the footage like with CCTV monitoring, Google has millions of servers to do that. It already analyzes the content of each and every YouTube video -- it provides automatic closed captioning, translations, it recognizes soundtrack and links to music stores, it displays ads depending on the video content, etc etc.