To be clear, they’re asking for ID rather than a photo. So, from their end, the system makes sense.
I’m still very unhappy about sending a copy of my passport over the web to them, to store for some indefinitely time period. It’ll be low-quality; you won’t be able to make a decent print-out of it… but I want to resist the practice entirely because it’s insecure and disrespectful.
I’m also enraged that they force this policy change on me after a sale but before they pay out, rather than allowing me to choose whether or not to continue using the service to sell items under the new terms. If I don’t agree to the change, I lose money. I already posted the item, the recipient already paid. This is ransom.