As someone that has spent a lot of time flying model sailplanes, I want to point out that there is no regulation which prevents a hobbyist from flying above 400ft AGL, as long as you abide by the guidelines established by the AMA or another "nationwide community-based organization".
The FAA boils everything from section 336 (the "Special Rule for Model Aircraft") as follows:
- Fly for hobby or recreation ONLY
- Register your model aircraft
- Follow community-based safety guidelines and fly within the programming of a nationwide community-based organization Fly a model aircraft under 55 lbs. unless certified by a community-based organization
- Fly within visual line-of-sight
- Never fly near other aircraft
- Notify the airport and air traffic control tower prior to flying within 5 miles of an airport
- Never fly near emergency response efforts