It does seem terribly hypocritical to complain about the police capturing images from a public street, while simultaneously defending people's right to record the police in public.
Cops are only recordable on the job, because they are public servants doing a public job.
It's not gray at all. You may record someone in public. You may record someone on private property iff you have permission or you are on public property. You may not use their image in an advertisement without a signed release.