The catch is that its only really a problem for the people getting flagged. Then you're guilty until proven innocent, and the only person to blame is a soulless machine with a big button that reads "For customer support, go fuck yourself".
As security theater, its cheap and easy to implement. As a passive income stream for tech bros, its a blank check. As a buzzword for politicians who can pretend they're forward-thinking by rolling out some vaporware solution to a non-existent problem, its on the tip of everyone's tongue.