I think the combination of the actually-not-that-discreet camcorder and the fact it didn't really have a reputation for being able to do much else interesting at launch was the perfect storm
I'm not really that bothered by people holding phones in a way that might be surreptitiously recording me, because I expect they're actually using them for something else.
https://www.penny-arcade.com/comic/2013/06/14