Let's analyze why this is impractical/wrong/flawed on multiple levels.
1) Public record =/= freedom of information act. These are different. The differences vary state to state, and while they are LINKED...that is NOT the law that would be dealt with in regards to public record. There are 50 public records laws. There is one FOIA.
FOIAdvocates - Freedom of Information Requests/Appeals/Litigation
2) Are you aware of how censorship works? Now I'm not 100% on it, but I did ask a friend who is a producer of a local sports network (not name dropping...she just understands the process). It requires a human to do the work.
Why is that flawed? Well. You are now asking for a department to hire someone to look at the footage and censor it. That means someone trained on the equipment. Oh. And let's not forget they have to review footage from (we will use Dallas as an example) 3000 officers. That equates to 24,000 hours of footage. There is 8,760 in a year. So you aren't just hiring 1 guy.
Oh. But wait. You say just incident footage would be reviewed? Not all 8 hours? Ok. So say a cop has 3 incidents in a day. They last 30 minutes. That is 4500 hours of footage for all the officers who go on shift within just a day (with some wiggle room).
3) How many home owners would let you release it? What if the homeowner is the one being arrested? Does the person being arrested have a right to say no?
The best course of action, as well as the MOST practical and intelligent, solution would be to NOT make it public record. Perhaps an independent reviewer? Footage would be flagged based on incident, the officers involved wouldn't have access to the footage, the prosecutor/da, and then the defense. IA could get copies as well. That would have to be worked out.
BUT...trying to censor all personal/revealing information would be impossible.