I think an important realization is that the public is not generally okay with CCTV installations when they find out they are the recycling VHS type. They are okay with them by default, and don't even bother asking.

I suspect that if you stop random people on the street, point to a camera, and ask them "What kind of camera is that?" the most common response will be along the lines of "I don't know, who cares?" These would presumably be the same people who don't pay CCTV cameras any mind in their day to day lives.

It is not that people don't mind because they are recycling VHS cameras placed by private citizens, but rather that they just don't care regardless. The fact that there is a widespread myth that all the cameras are government installed and networked actually drives home this point. People incorrectly think this and they still don't really care.