I interpreted #0 as "weeping" rather than "shouting" even before I read #2, but "immediately understood" is probably overstating it. I assumed, based on the logic of the sentence, that it must mean something like "It's not people [in a constant state of anguish]; it's people [trying to live normal lives]". If I had simply read the article in the Guardian, I probably wouldn't have given it much thought beyond that.
After reading (and possibly being overly influenced by) #2, I think that "crying out of windows" is short for "crying while looking out of windows". I agree that the preposition is not strictly correct, but it doesn't seem out of place in a transcribed interview.
The "shouting" interpretation doesn't make as much sense to me, primarily because I think of shouting out of windows as something people do when they're telling rowdy revellers to keep the noise down, or calling their kids home for dinner, not something I associate with political protests.