Jeez.. Nobody called me out on that statement. I stand corrected, because I thought I recalled it saying those directly involved with the operations (as in project operations) were okay to fly above within reason -- but obviously I was wrong. (Hey, I got a 94 on the exam and am not perfect.) To be honest, I tend to bend that rule when it comes to flying our sites because anyone who steps onto one of our sites has to be wearing a hard hat, is aware of the drone whenever launched (we radio everyone), and there are usually only a handful of workers and equipment that I am filming in a large area. And it's fairly easy not to fly directly over them as I am always shooting from an angle as they are usually intentionally part of the shot.
But talk about vagueness and wiggle room... "Adopt an appropriate operating distance from persons not directly participating in the operation of the sUAS." I guess that would be based on my judgement call, and I'm glad it's vague.
Sounds like you are dealing with the same problems I am. As for wiggle room, if you have control of the aircraft and it hits someone, you didn't have appropriate operating distance, at least that's what I believe big brother would say.
The other issue is your camera can only look in one direction and very seldom will you have it point 90 degrees down. So someone walking under the drone from the rear or sides would not be seen unless you are close enough to monitor all activity below and around your drone.
When I do panos they are shot from 200 feet, I place myself very close to where the drone is. Since the drone must remain hovering during the 35 photos I take, I must make sure no one enters the area. When shooting progressions and elevations I stay in very close proximity to the drone so I can observe anyone coming into the area. I can see no other way to do these safely and within FAA regs. and keep our safety people happy.
I must respectfully disagree with bending the rules even a little. A hard hat only gives a certain level of protection and depending on construction workers to pay attention to your drone operation I don't believe is a very likely. We have over three hundred people on this site, a lot of them I don't think speak English or at least act like it so I wouldn't depend on them staying clear of anything. Lets face it, these people are focused on their jobs, not ours, and I'm sure they don't see the drone as a potential threat or safety hazard.
If you were to have an accident, telling big brother that you warned them wouldn't do you much good. There safety is your responsibility and I'm sure you know that. I also know the temptation to push the envelope is always there, but do it long enough and you might get bit.
Best of luck in your job.