That “law” is suspect. I am not sure it has ever passed muster when challenged in court, but most people don’t know that.
Technology could be our friend here. There are products that let you live stream from your mobile phone (Kyte, QIK, Bambuser, etc.). The video would be hosted remotely and thus avoid confiscation, at least up to the moment the phone is physically shut down.
Would also be cool to customize a cell phone to look like it was turned off but the camera is still streaming. Think Poe’s Purloined Letter. TSA agents can be directed to think obvious thoughts, even if they aren’t necessarily true. Just sayin ...