Late to the party, but:
I don't see a problem with it in general. It's people like that guy that help keep our rights available. If you really think about it, the only reason that most people even called it in to the police is the fact that we don't exactly spell out or publicize that open carry is legal in certain states, or in general. Same with conceal & carry (I say this because I'm in MD). Most have been taught even from a young age that guns are bad, and stay away from them. If you see one, something bad is going to happen. Example: the police officers that go into schools to show the kids that guns are bad. I'm not saying that's wrong, I think it's great. However, no one tells those kids that when they grow up with the right control / supervision they can learn how to properly handle one and shouldn't be scared of it.
You should be scared of the person who's holding it, depending on who it is. If someone's uncle holds a gun, you shouldn't be scared if they know what they're doing. If you're not even taught how to tell if it's loaded or not, you'll be equally as scared if it's someone standing there that you don't know holding one, and your uncle 5 feet away pointing it at the ground. There needs to be a difference.
My whole rationale is this (above and beyond the whole "these are our rights"): if he was walking down the street in the same fashion he just was while concealing and no one saw it, no one would report it or even think twice about it. If he was walking down with no weapon what so ever, then no one would report it or think twice about it. The meaning of "suspicious activity" that the people reporting it are most likely thinking is that ... he has a gun. It's suspicious.
Personally, if it was easier to get a C&C here in MD and I had a wife and kids, I would take it with me to the beach as well. I'm protecting my family. Unfortunately I can't completely rely on the police to get to a situation in time to prevent or even mitigate anything involving a gun. Why? It wouldn't be reported until it was already started / over.
IMO it's like condoms. It's better to have it and not need it, than to have it and need it. But regardless of use, you need to know how to use it.
But again, just my 2 cents.