I've only been around one person with Glass and I never felt self-conscious or worried that they might be recording me. I constantly see cellphones in positions that *could* be recording me, but probably aren't. I wonder why we're okay with people always having their phones out, but seeing someone in fancy glasses makes us paranoid? Sure, it's more subtle with Glass, so? I suspect people only care because the media made such a big deal about it, enough so that they had to coin the term "Glassholes". But most people have never seen a Glasshole. I haven't. I mean the penetration of Glass is so tiny, how could you encounter people wearing Glass enough to form a stereotype about them?
That said, maybe next iteration could feature a bright white LED that flashes to let everyone know you are recording. And Google can then make a big push to inform people that No-Light=No-Recording. Would that reduce the creepiness? I'd hate to lose the camera, it enables a ton of awesome use cases. I suppose then we'd just hear ghost stories about people crippling the LED so they could once again be creepy.