FAA says they must avoid populated areas, but the laws of physics don't stop rockets from rapidly disassembling into a boat or any area where people may be living. At this point the lexicon will revert, and it will be a "crashed into" event.
This is why they don't launch over areas where people are living, and why rocket launches are occasionally scrubbed due to the presence of a wayward boat. They're actually being careful here.
