Facial recognition algorithms always give their best matching candidates, with thresholds to skip those not quite matching ones. Your article makes it sound like no such results were produced at all, which is unlikely how recognition is supposed to work.
Even if the system would allow it, not only would false positives be enormous, you'd probably miss the match as well (false negative).
OTOH, I do actually see more and more HD (or relatively high def) surveillance footage. It all depends on how when the security system was installed, I guess. Also smaller businesses can afford a shorter turnaround for these things, as well as not having the handicap of a head-start[1].
[0] actually I'm guessing those lifetime spans, it seems a bit much? but I also can't see anyone signing off on a security system that's expected to be replaced in 5 years. good thing my job isn't facility management ... :P
[1] http://en.wikipedia.org/wiki/Law_of_the_handicap_of_a_head_s... , how odd, is there no common English phrase for this law?
One are also dealing with a lot of legacy systems her. But the next generation surveillance system will probably be HD, and then maybe 3D, 4k, 16k etc.
In a real life scenario, surveillance camera images are all you will get to work with, most likely. So maybe, the focus should be on figuring a way out to recognize individuals based on images taken at those angles. Is there any progress in this regard?