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Law enforcement doesn't get a blanket right to all government data.

If drivers licensing agencies are allowing my records to be used against my interests (being returned as a potential match is certainly against my interest), it makes me consider the value of being a licensed driver.

I consider anything that encourages unlicensed driving to be a big problem -- unlicensed drivers are likely to be less well trained and less safe on the road, and are less likely to have evidence of financial responsibility (eg insurance) and may not be able to pay a judgement, and likely will drive unlicensed vehicles as well, so may be very difficult to track down in case of a hit and run.

Fundamentally --- drivers have consented to their photos being collected for a specific purpose, and using it for other purposes against the interest of the driver is a big problem.