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Fully participating in a Phish show is a deviant behavior in itself to most of the world (try going to almost any rock concert outside the jam scene and *gasp* standing up for the whole show). I don't buy the "why weren't these people facing the stage and rocking out instead of filming" thing because the festival experience is about all aspects of it and even at regular Phish shows I have gone away from looking at the stage to wander, people watch, whatever. I am not defending their actions but railing against these kids because they aren't experiencing the show the way someone else would is just a waste of breath IMHO.
I personally would never film something like this or post it to the interwebz but then again I also probably wouldn't lose my mind like that guy did either and if I did that in public, I wouldn't be surprised in this day and age that someone caught it on camera. These kids deserve a talking to about privacy and potential risks of posting something like this and if they don't understand it, they should be fed large doses of LSD and then followed around by a camera crew.