As the resolution increases, the ability to reconstruct a lower resolution image goes up as well, which will be more than enough for most identification purposes.

Security as an accidental quality of a system is not security.

Fair point. Elsewhere in thread it looks like they are using a fixed resolution. I guess at that point it comes down to whether they've left enough mid-frequency content for an algorithm to identify the slightly darker/lighter patches of facial features, and whether that spacing can actually identify a person.