Is Too Much Resolution Illegal?

I finally replaced the last analog SD camera on my home system, a pathetic excuse for a camera, purchased around 10 years ago when it was a cutting edge integrated IR micro-bullet, shown here:

It topped out at something called CIF, which is an industry term denoting a resolution that lies between "wretched" and "unusable", or 360x240.

It was mounted next to the garage door, looking straight out into the driveway into the street and beyond. I replaced it with an even cheaper 4MP IR bullet IP camera, which likely originated from the same overseas zip code.

I matched the FOV from the old with the new. Everything looks great, except that I noticed that where there once was just a barely distinguishable outline of the house across the street, now if i digitally zoom I can join them for dinner!

I have used the privacy mask to cut out some sections, but the bulk of the FOV cannot be eliminated this way, since it would eliminate the near ground, which is what I use it to capture.

I'm also reluctant to move it higher because it also looks up the street, and while it wasnt pretty, it could reliably trigger on headlights approching (I live at the end of a one-way street ;).

Has anyone dealt with this issue when upgrading cameras?

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