I guess that I've never really thought of the licensing process in these terms before, sig. My first reaction is to say that I believe that this woman's reaction was extreme, but that it isn't unusual. People are, I believe, products of their environment, and I guess that she hasn't been exposed to firearms in the course of her life. They are something to be hidden, and even the mention of firearms is taboo. I think that the "flasher" analogy is appropriate.
Acceptance varies throughout the country. I have spent time down in Southern Colorado, and have dined at restaurants with ranchers who carry their pistols to the table on their hips, and I have been warned by the local gendarmes (yeah, I know, literally "armed people", but I'm referring to the Boulder Police) that it's prudent, in our community, to avoid alarming the local, generally anti-gun, population by carrying my weapons to and from the range with true discretion. Open carry is legal in Colorado, but the officers have indicated that it is not unlikely that they would receive a call if people saw the guns. Yes, this is unfortunate, and in the words of a teenager: "So unfair", yet this is the reality.
Colorado is in the process of modifying its CCW process to standardize the application procedure. I believe that acceptance of anything new, of anything "scary", comes only incrementally, in a Psych 101-type desensitization progression, and that a relaxation of the procedure is a step towards relieving the sensitivity. I hope that more people apply for the CCW permit, and that, eventually, there will be a greater acceptance of the sight, and mention, of guns - even in "liberal" places like the People's Republic of Boulder.