And it's not like there isn't already a black market of stolen IDs already. Get a photo of your client, run it against a database of stolen info, get a match. I understand I'm simplifying this immensely, but if the system can be broken, then it will be exploited. And really it's not if, but when.
I can see this being a useful technology in the case of law enforcement, pharmacies, doctors offices, or anywhere you would need to check in with your driver's license.
Without the picture? My understanding is that release does require authentication, and the message could disclose whether that was done with say the fingerprint used when the license was added to the phone.
The use of cryptographic signatures means the weakest link would likely be the identity verification process of the issuing DMV (or their app).