The setup you described would be really expensive and cumbersome compared to people submitting their own photos, assuming of course you can apply for a passport by post or online and don't have to go to an office with an appointment anyway, in which case it may make some sense even if it only increases the quality of photos by a few percent -- to be honest I'd be skeptical that the improvement would be more than this, the parameters for self taken photos are rather strict after all, such that it's quite hard to take photo that 'doesn't look like you' because of light, hair, makeup etc and have it be accepted.