Re: "the bouncer checks that picture with the person in front of them"
"What am I missing?"
The audit trail, and removing the need to produce a ID card with full personal information exposed.
It doesn't look so bad overall. I think the privacy issues are real and must be investigated, but still are maybe somewhat exaggerated: facial recognition happens once here, when registering. It's not even obvious that they need to keep that information once the ID card has been validated (it's not clear whether they do or not from the article).
If they do, that's still better than each and every nightclub having their own crappy system hackable while you wait in the queue. If they don't - well, then, that'd look good, wouldn't it? A more in depth article is needed here.