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I do think there are some pretty serious questions about their authority to regulate drones in general and this drone in specific, though. I'm not going to take it to the extreme of "the FAA has no right to regulate drones because my understanding of the constitution doesn't allow it", but that doesn't mean I have to shift 100% the other way either.
The current weight limit is 250 grams, which is ludicrous - the FAA has no business regulating a drone the barely over the weight of 2 sticks of butter flown in a backyard. In my opinion, the FAA really only should regulate drones which have enough weight to endanger aviation at large - i.e, weights equivalent to bird strikes. Lets say a pound and a half.
At that point, the best way to regulate it is, in my opinion, by requiring all GPS based flight controllers used or imported into the US to have a geofencing database restricting flight within a few miles of the airport. The most popular off the shelf consumer drones all already do this. It's a wholly reasonable product safety measure, much as we require milk to be pasteurized when sold commercially.
Their current regulations are awful, but they have been improving them, so there is no reason to think they are going to stay awful - they've only had 2 waves of published rules, and the second ones are much better.
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