Technically You are still legal. This has nothing to do with the courthouse or the county or city government. Covenants are a civil matter, they are a legally binding document, however the police or sheriff have no authority in the matter and have no power (or desire) to enforce covenants.
If you are breaking a covenant your homeowners association has to notify you of that fact and then if you choose to defy them they would have to take you to civil court and sue for some kind of compliance.
What this means.... Its not totally clear, but from your posts what I read is that there is no homeowners association to speak of, just your 8 neighbors. SO in effect there is no one for someone to complain to. There has to be some kind of organization of people who are interested enough in keeping the covenants that they are willing to go to the work (time and money)to enforce them(again it seems like you arent aware of such a group of people, so they probably dont exist).
What probably happened was that when the development was originally built, the framework for covenants was carried out but no one has followed through with enforcing them.
Another way to think of it is this....the covenants are the laws for you and your 8 neighbors, and the laws are instituted by the government of your development, which is .....you and your 8 neighbors...these rules are imposed upon you by yourself(and 8 neighbors). If all of you are breaking the rules, then you probably have strong support to actually have the covenants changed. Figure out what the legal framework is for your development; call a homeowners association meeting and change the rule. You are not at the whim of some higher power here. You and your neighbors have the ability to rule the neighborhood as you like.(If you lived in a neighborhood of 150 homes this process might be much harder)
I was in a similar situation. The area where I live was subdivided 50 years ago and someone arbitrarily set up some rules. no one in the area today likes the rules or cares about them, we've all been breaking them for 25 years and since there is no one to enforce them, for all practical purposes they dont exist.
Lastly, Ill say that I'm making a lot of assumptions about your situation based upon what I read in your post. Dont go off all half cocked. Quietly research what the actual rules are which outline how the covenants in your development are made, changed, and enforced. It might be very easy for you and your neighbors to change the rules.