When you're launching the largest and heaviest rocket ever made not running headlong into creating the biggest fuel air explosion is part of the regulatory agencies job. The first launch was pretty wildly out of control so everyone wants to make sure the rocket explodes when told if it doesn't go where it's supposed to.
I think you touch on the issue of managing public perception as part of the FAAs job.
In general the public is not monolithic when it comes to this. Many people would ecstatic with the biggest fuel air explosion and thought Launch 1 was great while others were aghast.
Some people even think rockets shouldn't be developed at all.
As a result, you see regulators trying to find a line between covering their asses from blowback from different groups of constituents.
