GDPR is not about annoying small businesses at all. First, to file a complaint one has to go through several steps, and the fine will be proportional to the offence. No small business owner will have to pay 20M€ for logging an IP (plus keeping IP logs are actually mandatory). Offenders will first be issued a reminder, then be fined if they don't comply after that. If you're a small business owner and you don't comply, then you can't complain.
Secondly and most importantly, GDPR is not about preventing people to get information, but rather about preventing people to track customer. If I use your example, GDPR would prevent you from following someone after they watched you juggling. It would prevent you from following them home, noting where they work, who are their acquaintances, what kind of food they eat and so on: it's technically legal but incredibly creepy. If someone were doing this to you you would be the one to tell them to piss off. You can perfectly write what are the observations of the passer-bys who watched you, as long as the log is anonymized. Which is easy to do and not harming for your business. You didn't want to track them anyway, did you?
Secondly and most importantly, GDPR is not about preventing people to get information, but rather about preventing people to track customer. If I use your example, GDPR would prevent you from following someone after they watched you juggling. It would prevent you from following them home, noting where they work, who are their acquaintances, what kind of food they eat and so on: it's technically legal but incredibly creepy. If someone were doing this to you you would be the one to tell them to piss off. You can perfectly write what are the observations of the passer-bys who watched you, as long as the log is anonymized. Which is easy to do and not harming for your business. You didn't want to track them anyway, did you?