Carrie, I think you miss one point - I don't think the system will actually give all your personal information to the airline - they will ask a question ("is this person a risk") and a risk assessment would come back. It would be used to spot people who have no real records, people attempting to travel under and assumed name, people who shouldn't be in the US (illegal aliens, expired visas, etc).
I didn't read anything that said the airlines would obtain or retain your personal information.
Alex
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