It has nothing to do with police competence. The police can't possibly go through millions of random facebook pictures to find someone by sheer brute-force search, but a crowdsourced effort certainly can.
I have never understood employers' urge to peep into people's social media accounts. At least where I live companies are having enough trouble going through all applications considering only professional factors - how many hours does it add to this process to go through people's mostly irrelevant social network accounts as well? The accounts all the smart ones have edited before a job interview anyway. The accounts the smartest ones won't have under their real names anyway.
The most troubling thing, however, is that if you weed out all the applicants who refuse to give out passwords and violate terms of service, YOU'RE ONLY HIRING PEOPLE WHO ARE HAPPY TO SHARE PASSWORDS AND VIOLATE CONTRACTS - even before they are hired. At this point, the potential employer is basically an unknown person to the applicant. To me, that sounds like the dumbest move ever, but hey, that's just me :)
I actually went out and bought this. Just to support the band, I'm of the generation who used to copy C-cassettes... and now, there's an infinite supply of copycat bands I don't even like I might listen to occasionally and then delete off my hard drive. But anything that I do like, I go out and buy a CD. Tho in general, I'd prefer they'd have a PayPal button, because I really don't like all those millions of CD's lying around. I download movies, those I like, especially domestic ones, I buy a ticket for. Yes, I'm one of those idiots who download a movie and then might buy a movie ticket, with no intention of going to the movie at all. P2P is free, but at least for those of us in small countries, we like to support good domestic effort (which we have seen more and more of, regardless of the supposed losses of the media industry) with real money to see more of those movies, regardless of P2P. All I can say is, WTF? I wouldn't buy those crap cd's anyway, I still download those I buy just for the ease of use, and... who loses here if they put me to jail?-)
Send email to your representative (what that means varies from country to country of course) and demand a nice law about registries. We technically have one in Finland that prevents a company from keeping a registry of private information without the user's knowledge. I don't know how well it is upheld tho; with all this state-issued censorship stuff it might be that I soon have to move to Sweden :)
Really, allowing companies to collect this kind of data is the first step towards 1984, and I thought we're 24 years past that already.