Loren- where did you get your shear wall number of 70plf? That is super low for a shear wall, and I don't see anyone placing plywood horizontally on houses.
But I agree with you on this being too high and conservative, and agree this is just a start.
12x25 foot deck, 12psf(12')(25')= 3600lb of total lateral!
There would be piles of sticks and bodies all around the country if that was accurate. I think there would have to be some type of upper limit, or a reduction with the size of the deck, or the loading should be expressed in terms of PLF applied laterally to the two sides of the deck. Perhaps a table that would give you different values based on the dimensions of the deck or something would be more accurate and realistic.
If you have 40 people on your 12x25 deck, they cannot realistically all move in unison and get any type of momentum built up. They certainly are not going to be able to generate 3600lb of total lateral force.