I really, really want to say that I think this technology is a bad idea. But I don't.
I don't think that the technology is the problem here, as Digital Recognition said they are not _technically_ invading privacy since the license plates are available for everyone to see. And if you outlaw it, whats stopping a few crooks organizing their own underground data collection and selling the stuff on a black market? Rather, I'd prefer to see a different way of "licensing" cars. Maybe some kind of RFID chip that can only be read by law enforcement? I know its quite unlikely something like this will ever happen, but anyway.