Yeah even though it's smaller in this instance it's the motion that's the issue. We decided to not allow models that have visible motion (pan and tilt) to be mounted to the outside. Part of that was about harmony between neighbors. Since these are townhouses we would be dealing with reports of neighbors pointing their camera at their neighbors yard and "spying" on them instead of watching their own property. Having a fixed position allows neighbors to feel more comfortable about a camera next door and provides a more objective framework to adjudicate the issue of privacy from.
Almost all of the neighborhoods in some areas are HOA. There's a 95%+ chance there will be an HOA if you buy a house in my area. So in that respect there isn't much of a choice. Yes we do tell people what they can and can't put on the houses they pay for but the "we" should mean the collective group that can vote on these things if the like/dislike them.
There are some pluses to HOAs too. We keep awful and disgusting activities away from your house. There will be no dump truck parked overnight on the street in front of your house. There won't be a yard full of trash next door. For me the main bonus is the ability to have private property around the neighborhood. Since we have an HOA we can own the streets, sidewalks, and recreation space in the neighborhood. That means random people should not be cutting through, soliciting, using our very nice playground, tennis court, parking on our streets, or setting foot inside our boundaries. I highly value our private island, which I have the privilege of protecting, over the limitations of the exterior building modifications. I tell people they are trespassing and to get out all the time. If somebody is ever doing something weird that wouldn't necessarily be considered illegal (hanging around at night, walking around suspiciously, picking through our trash late at night before trash pickup in the morning) I call the cops and have them kicked out. At first the police tell me they aren't breaking the law but then I always have to explain to them that it doesn't matter what they are doing they are trespassing and the cops finally get it that it's private property and then come out and take care of it. I have a much more beautiful and safer neighborhood due to the fact that it's all private property.
I also very much understand how easy it is to become a tyrant. I worry about that a lot. I try my best to treat everybody as fairly as possible and only use force as a last resort. I am able to make changes that benefit the lives of the residents much faster than they would ever get out of a city official. I can fix problems with snow removal, requests for a new street light, repairs to facilities, etc. in an instant with the stroke of a pen.