I think its a stupid rule. I also think Insomniac is only saying its a "fire hazard issue" because they don't want to gain the amount of hate Hard got when they were straight about not allowing kandi or lights so people would think of their events more as concerts then raves.
It not like people are bothering any one etc etc. As a glover, I NEVER go up to people and offer. I'll give them to my friends and people will come up to me and ask, only then will i do it. I also make sure to be courteous and keep out of crowded areas where people are trying to walk through etc etc. And although I am one case, I've never met anyone that runs up to people and starts waving lights in people's faces who don't want a show or whatever.
Like many have argued, it is a cool way of expression. Try the once and i guarantee you'll want to play with again...and again.....and .....again.