Whether auto-face recognition is a good idea or not, it's
going to happen as the trends we all know and love continue. Even if major tech companies don't build this in to their camera-enabled products, open source projects will using distributed datasets. Or perhaps not-so-distributed datasets: face recognition systems use only something like 70-80 nodal points that give you internodal distances like eye spacing, mouth width, etc. (I may be wrong on that number; if I am I'm sure someone who works in this area will correct me.)
If this happens, I suspect it will change human interaction significantly and make it more different to be casually anonymous. I'm not so worried about people I casually interact learning my identity; I'd be more concerned about cradle-to-grave government collection and permanent storage of these records, coupled with license plate scanners, etc.