If this technology becomes more widespread, I would expect to see people wearing clothing in public that covers their faces: hoods, hats, and thick sunglasses. I've heard the widespread presence of surveillance cameras cited as one reason for the popularity of hoodies in London. People can adapt to this type of technology without too large of a disruption to their lifestyle.
In some ways it would be nice because it would make it would make it more socially acceptable to walk around with your face concealed. Many people would prefer to do this so they can leave their house and still avoid unwanted social contact.
I think that what should happen is that the courts will use the same rules in slander cases for facial recognition of photos: if it hurts you, and you're not a public person, then you just need to prove that they caused you pain in whatever form (financial, legal, physical, etc.).
If you're a public person, (i.e. celebrity, elected gov't official), then you need to prove malice on behalf of the people who hurt you.
At least, that's how I hope the courts will treat these issues.
What if there is no one to sue though? Think of it. What if you anonymously filmed/photographed all the people going into an abortion clinic, produced a list of names/addresses, and then anonymously posted that list online?
This could easily allow people with an agenda to drag us into a society reminiscent of the Soviet-era fear of your neighbour. "Should I get that abortion? Or is it too risky that my name might be blasted all over the Internet and maybe I become the target of some nut-case that wants to use blood to make a point?"
well, in that case, wouldn't it be the fault of whoever caused you damage - maybe the photograph was innocently taken, but the group that uses the facial recognition data to attack you obviously need to give you money.
That's not much consolation, is it? A group or an individual that would attack someone based on an anonymous online posting a) isn't going to care about punishment after the fact, in fact will revel in it and b) won't have any assets anyway.
In some ways it would be nice because it would make it would make it more socially acceptable to walk around with your face concealed. Many people would prefer to do this so they can leave their house and still avoid unwanted social contact.