This seems like a bonehead move, especially by the Bloomberg administration, which is easily the most competent and least hormonal city government in my New York lifetime (which began in 1979). According to a story last week in The Times:

The new rules, which were proposed by the Mayor’s Office of Film, Theater and Broadcasting, would require any group of two or more people who want to use a camera in a public place for more than 30 minutes to get a city permit and $1 million in liability insurance. The same requirements would apply to any group of five or more people who plan to use a tripod in a public location for more than 10 minutes, including the time it takes to set up the equipment. The permits would be free.

Picture New York is fighting the good fight. Go sign their petition.