Teadoggg,
That is true. There is a small risk of being discovered and busted for vagrancy/trespass/loitering while stealth camping in a spot. You also were correct, even if you got discovered, most of the time, they will tell you to scat or just leave you alone and the odds of being arrested are minimal. You'll be harassed more by the highway patrol trying to "protect your safety" while riding your bike. There are a few areas that I would never consider stealth camping by. They include.
a) schools
b) playgrounds (unless part of a city park where camping is allowed)
c) any place marked NO TRESPASSING
d) medians in the road
e) land between exit ramps on highways including highway overpasses
f) near a military base
g) Mexican border
h) Cemetaries that are maintained
i) any land where you have to hop a fence (implied NO trespassing)
I also hate camping legally in RV parks. I also use a dog test when picking a spot. If I can hear a dog fairly close by, I move on. I also make sure that I start no fires and only use my camping stove. And of course, leave no trace.