It is true that better datasets are sorely needed, but what would you suggest Yann and other researchers do about it in this situation?

Proactively doing the things that the ethicists are calling for. Use Model cards for any model. Actively think about and discuss the limitations the model, intended uses, etc. That goes for everyone.

For someone like Yann specifically? Publicly state that the ML scene is optimizing in a myopic way, and invest in doing so less myopically. For example, I think the translation space has a clear goal and the right goal and is making strides in improving language models in many useful ways.

Ultimately, if there aren't ethical and useful ways to apply facial recognition, leaders should be steering people away from those research topics.