I read it as a bit more encouraging than that. I seems like a not too subtle hint to local governments that it they exceed their authority it is unlikely to stand up to a legal challenge.
Except they just said "here's the rules" without saying "we plan on enforcing them". To get enforcement it will take someone with a law suit forcing their hand. Until then they will continue to say "here's the rules".
Yes - but remember the subtlety of this situation. The FAA has been quite clever here; if you breach the hobby "guidelines", then you cease to be covered by Part 101 and immediately fall back under Part 107, at which point you are breaching at least the 400 ft Part 107 requirement. And, if you are not Part 107 certified, you are also flying illegally.
So for hobby flight it is only a recommendation, but if you don't follow it you are not, in the eyes of the FAA, a hobby flier.
Except the subtleties only really matter once there is case law to support it. Right now there are a bunch of people hanging on a forum trying to be smarter than each other quoting rules. I am not a lawyer and I will take the "regulations" as I can do things unless they explicitly say I can't. So, I am not part 107 and I can fly over 400 feet AGL.