Agreed, but at the same time, understandable that some action would have to be taken eventually. As you mentioned above, 1.6 million R/C aircraft are sold each year. While I think most enthusiasts understand where, and where not, to fly their aircraft, given those numbers it's reasonable to assume that there are a lot who may not know, or simply just don't care.
Privacy issues aside, I think the more pertinent issue at hand is the potential for these aircraft to enter controlled airspace, such as military bases and airports. Facilities like these go to great lengths to mitigate potential bird-strike, so an unmanned aircraft presents a whole new can of worms. In that respect I can certainly understand the FAA wanting to track down the jackass who flew his aircraft into controlled airspace and shut an airport down until cleared.
The "within 5 miles" seems pretty ridiculous, as tower personnel could hardly see that far out, and it's unlikely a drone could fly high enough to enter into that section of controlled airspace. Overall, it does seem more like feel-good legislation rather than anything which will actually be enforceable. As with most laws, it's simply become easier to ticket, and fine, rather than educate.