I think you're right, Kevin.
I know the law in "The People's Republic" of California(I knew you'd like that one) is that the bars can not be any higher than the rider's shoulder.
BUT, I see yo-yos almost as "cool" as this yo-yo is(in other words, Apehangers almost as high as this bike) all the time on the roads around here however, and so I guess the LEOs are just turning a blind eye towards 'em nowdays.