johnShe
I went back and read it and you are correct, the 400' rule is only mentioned in the portion about government allowed activites. they do not mention it under hobbyist, but refer to organization for recommendations.
(C) allow a government public safety agency to operate
unmanned aircraft weighing 4.4 pounds or less, if operated—
(i) within the line of sight of the operator;
(ii) less than 400 feet above the ground;
(iii) during daylight conditions;
(iv) within Class G airspace; and
(v) outside of 5 statute miles from any airport,
heliport, seaplane base, spaceport, or other location