Yes . . . just more silly laws. In fact . . . the reason Toyota discontinued the RAV4 factory fog light option was because some state laws do not allow fog/driving lights (except for off-road use) to be mounted more than a certain height from the road. The TOP of the RAV4 bumper is too high. Personally, when I have my HIGH beams on . . . I like the added light from my fog lights :-)
Regarding why the factory wiring only allows the fog lights to be on when the headlights are on . . . I don't think this is legal issue . . . it's probably because they simply share the same electrial circuit.