Yes, when you're in public you have no legal expectation of privacy. However, when you're using a computer at an Apple store, you're also not expecting that the webcam is snapping photos of you that will be posted online.
What he misses entirely is that what constitutes "legal" is not entirely congruent with social norms. Especially as it relates to what will happen to us in public. Legality defines the hard boundaries of our social expectations. We normally set those boundaries at a point where someone is "harmed". The broad social contract is that we won't trample all over each other, physically or emotionally, so we establish laws at the boundaries. Cross the boundary and you face punishment.
For example, it's not illegal to take photos of people on the street, yet US society has a love-hate relationship with the paparazzi. They're not breaking the law, but there are plenty of people who... uh... strongly dislike them. Kyle crossed over in to the same territory. Not illegal, but definitely hanging out on the fringes of socially acceptably behavior.