You are technically correct but also very wrong. Yes, it is a lot of pain to get the paperwork done and you have a high chance of being rejected without a good reason. I know dozens of people who run cheap, chinese IP cams recording public spaces directly to dubious cloud services here in Switzerland. You just don't ask.

Work related: We sell solutions including CCTV and video-intercom and we have only recently started providing customers with stickers they can use to make those installations comply with regulations. Technically, it has been the responsibility of the customer installing the device, so us doing this is just nudging people towards compliance because nobody cares. I can guarantee you that there are tens of thousands of cameras here filming public ground and it is not prosecuted. In fact, someone at the office put one up a long time ago for a PTZ demo (not recording) that was not compliant and it took almost 10 years until we got ordered to take it down.

Most of these are not recording, only recording situationally or only locally. Still not legal technically. However, ever since cheap cloud-connected doorbells have become available, they have definitely been installed here. They do not comply with regulations whatsoever and next to nothing is done about it.