Is it just me or does this seem a little close to the crowd?

It's just you. The plane flies parallel and with sufficient distance to
the crowd, so even if he'd hit the ground, nobody would have been in
danger. The folks you see on the ground are not spectators but airshow
stuff or pilots.

Whether the pilot put himself in danger is another question. I can't and
won't judge it, but even if he were, that's what airshow pilots do
routinely.

And concerning Dudley's "our flight safety community for air shows", I'm
looking forward with interest what they intend to investigate about a
Portugese registered airplane flying in Portugal...