As others have mentioned... eliminating the camera eliminates any possible augmented-reality applications. That is very far from ideal.
What I think Google needs to do, is quit being coy with the invites and the "why I want to be allowed to buy Glass" nonsense; and get the technology into as many regular prescription frames as they can as quickly as possible. Then what are the anti-Glass types going to do, have a contact-lens only policy? Forbid anyone from entering who's wearing any kind of glasses? It simply won't be tenable. And if they try, eventually they'll do it to someone whose eyesight is bad enough that their antics will bring the ADA into play. That will result in a massive and well-deserved lawsuit that the businesses *will* lose.
And no, I don't want to follow strangers around and surreptitiously record and upload them. I barely think to pull out my iPhone and record the interesting bits of my own life; and I've no interest in yours. I want the augmented-reality aspects. And the sooner the luddite brigade is slapped down, the sooner I can get my frikkin-terminator-vision.