Dave...you're 101% correct on "rules confusion & conception". We have guidelines, rules, & good operating practices....in general. Presently, there are few written FAA drone rules.

Some things I gathered at the 1st Midwest Drone Conference back in Jan.

Unless you're really-really-really wanting to be a commercial business using a drone to charge for services by that drone, you might be well to wait for full implementation of FAR Part 107 (drone regs). BEFORE clicking on the link...please remember this, at present what you are reading is proposals only. Those words might appear in the final rule, and they might not, or they may be modified. Please don't quote them as gospel...not yet:

https://www.faa.gov/regulations_policies/rulemaking/media/021515_suas_summary.pdf

Supposedly Part 107 is supposed to be ready by July 2016. However, there seemed to be 2 schools of thoughts on it from folks giving breakout sessions who were probably closer to the subject than 99% of us. 1 group thinks since this is an election year, there is NO way we will see a final Part 107 in 2016. Another group seems to think since it's an election year, it'll be pushed thru hurriedly. Seems there's been little official discussion on time line.

A knowledgeable presenter suggested that "seeing the drone" may not mean actually seeing the drone, but rather seeing the airspace in which it's operating. As other posters sometime admit, it's apparently hard for some folks to see their drone much past 3-500', depending on the drone's size & the cloud cover of the day. But, the FAA may actually be concerned that you can see a 2000#, 40' wingspan airplane that may be operating in your area and do your best to get your drone out of the way. An example would be; if one were operating their drone @ 40' AGL on the back side of a hedge row in the summer, you can't see it or probably not see full size spray planes if they were back there either. Not a good operating procedure. But, if you're in flat land Illinois or similar, and you can typically see unobstructed for 5-10 miles, and you know your drone is about 500' away from you, and you see a spray plane coming about 1.5 miles out, then it's time to bring the drone home or land it, or keep it in hover @ 10'. So, perhaps the final rule won't be so restrictive as we're presently thinking, or that's my hope anyway.

Also, along that same line would be "night flight". If the drone is lighted & you're "familiar with the operating area"...why not night flight?

Anyway, one will have to take a long-hard deep breath if you want to operate commercially, I think. It seemed to me that operating commercially w/drones, just like in real airplanes, puts you closer to the FAA's scrutiny. At this point, the FAA inspectors (at least in this area) are not 100% drone designated, meaning they may be handling big planes, or drone issues. Starting about 30 yrs ago, the FAA has cut-cut-cut & done more cuts. Luckily for much of aviation they have allowed the private sector to pick up much of what they drop. I became an FAA written examiner after they quit administering written tests at the FAA sites. I'm guessing our drones may also have similar non-governmental employee businesses crop up to help with rules & their enforcement.

But, to generalize, there is still a lot of misconceptions. That was apparent listening to many speakers & following audience member questions.