LoL, the video. :D

I think it's very predictable that if you do an installation like this, there will always be people who are provocative about it, those who find it fun, those who see it as an observation station, in other words; all kinds of reactions. Expecting everyone to like it is pretty unrealistic. Conversely, it would be extremely creepy if everyone behaved the same way, I think.

theory would just collapse in the face of a broken wire, buggy code, or misbehaving sensor.

HaHa! Yes, I have been in event management for a while myself. We've been working with artists and it was great fun. Of course, nothing runs perfect and one has to put up with all kinds of accidents and unforeseeable things. That makes good stories.

McLuhans theory - investigated from people who wanted to check the correctness of it - revealed contained contradictions and paradoxes. Quite an interesting read (the academic paper is over 100 pages long, it's German so I spare to give you the link). He had many good points as well as bad ones, to put it simply.