"Imagine actors and athletes doing what they do today on Twitter—sharing their adventures from a first-person POV—except doing it with Glass."
Imagine having to click on a dozen copyright notices and pay for each image you see on Google/Facebook because the image they just took is owned by $ACTOR in europe, but $STUDIO in USA and $AGENCY in Japan but a blank page because Facebook doesn't have a right to use it in Canada.
That's pretty much true, distribution for content will be a nightmare -- but that's due to the content-distributors being crazy and not so much due to the device being crazy.
So, like, just to be totally clear, the business which doesn't have this problem with videos is porn. I don't know how interested they are in Project Glass in particular, but if Project Glass becomes a way to shoot amateur porn, you can bet that there will be web sites which cater to it. Distribution rights problems will not be a main concern because it's just not a general concern in that industry -- at least, it doesn't get in the way of the day-to-day transmission of the vast amounts of data.
People don't "follow" images on Instagram by actors - the google glasses example is proposing a twitter-like system where users follow an actor's view live.
Imagine a system where Napster had a musician bugged and could stream what they were playing in the studio - think there might be right's issues ?
Imagine having to click on a dozen copyright notices and pay for each image you see on Google/Facebook because the image they just took is owned by $ACTOR in europe, but $STUDIO in USA and $AGENCY in Japan but a blank page because Facebook doesn't have a right to use it in Canada.