Back when I joined PR in the town I live in you just didn't see people taking pictures anymore. Unless of course you were at a big event a wedding, graduation, ect. No even with cell phones, most phones didn't have cameras and if they did they it made really bad pictures.
When I finally went digital or could afford it. The E500 was my first DSLR. No one was taking serious landscape pictures in my area. I would go out and never, ever see anyone else taking pictures. The town was mine. I owned it. Sort of, lol
But now it's another place. Everywhere I go it seems someone has a camera around their neck. I really think as much as cheaper digital cameras have helped increase the population so has the cell phone camera. People got interested in it when they already had a camera on their phone and just wished they had a better camera. So they bought one. I think cell phone cameras help the market way more than hurt it. Now the compacts. Just like the Kodak Instamatic people are flocking to them for different reasons, size, ease of use, image quality, flexability ect.
I write this because the world has changed so quick. Like I said a few years back I never saw anyone carrying a camera unless they were taking pictures of their kids. Then it was a P&S or one of those were disposable film ones.
The funny thing is now I carry a compact with me for just going out and around town and leave the big gun at home unless I want to shoot a landscape or have a specific thing to do. I see a few here and there with there DSLRs but rarely see compacts.
Also I never thought I would find a compact that would do everything I needed but with my A77 out for repair I must admit the NEX 7 is close, very close. Not exactly there but if I had to I could live with it, easily. Just a luxury or two missing. Wireless flash issues and a better selection of nice glass in small size ect. My a77 is missed but I could have survived with only one or the other. But I needed a backup and right now I am glad I had one.
I think the paranoia from people getting their pictures taken of them in puplic is just due to the fact they are not use to so many cameras out there. Also privacy is just a bigger issue now that the world has gotten so small due to the internet, Facebook, Twitter ect.
This summer I was taking pictures of my daughter at the local fountian that kids play in and was chewed out by some guy who thought, wrongly, I was taking pictures of his kids. I honestly didn't even notice them. But after a minute of getting chewed out the guys dad showed up. I had worked with his dad for years and he calmed his hot headed son down.
Just sayin' the world has really changed in the 2000's.