Sounds plausible to me. The question is whether anyone is really using this technique. Sounds like it would require nontrivial bandwidth and analysis.
No. This is not at all the question. A possible privacy breach is a serious issue, regardless of whether there is a working POC. If this data is somehow compromised, a stalker could get your identity just by following you a few minutes on the street.
I don't think it would require significant bandwidth; the data is just integers which can be collected, compressed and uploaded asynchronously (as part of another heavy upload such as someone sending a picture). The analysis part could be similar to how Shazam works, but that can be done on the server side so on-device performance isn't a concern.