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Kurt - there's nothing really new about that altitude. It has for a long time been established at 400' agl. That is the AMA rule, and that is the rule published in AC 91-57 back in 1981. The only change I see is that it moves the rule from being advisory in nature to being regulatory in nature.
Also, 400' is the ceiling for flying without a license. As I understand it, drones will be allowed to fly higher, but only when piloted by a FAA licensed commercial pilot. Do I think that will help? Not really. There are other NORDO aircraft operating in Class G airspace, but they are easier to spot than a little UAV quadcopter. And the UAV POV vision is limited to looking forward. No head swivel watching for traffic.
Maybe this is what the FAA wants. After a few midair collisions, the public outcry will let them regulate the drones much more stringently.
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