Holy smoke, Phil! Thanks for the info-- it must have taken a while to put together such an informative post, especially with all the links. ^
If I fly this summer perhaps I'll follow a slightly modified approach... Instead of handing them a drivers license with tape all over it, I'll leave the license at home along with anything else that's unnecessary in my wallet. I'll keep 2 pieces of ID-- my insurance card (obviously, with no picture), and a piece of county-issued ID (with a picture). Using this approach, I can keep the information I want to keep safe out of their hands (potentially, at least) while still appearing to comply with their requirements to submit to their inane process.
And just to find out exactly how much I can get away with... since the approach above will probably result in getting a pat-down anyway, I'll refuse to go through their WBI by telling them that I have a medical condition that prevents me from raising my arms (or just wear a sling on an arm). And I'll also tell them that I have a medical condition that precludes me from removing my shoes.
I might spend a little more time going through security, but at least I'll get to keep my dignity with me, and get to do it my way. Now the only question is how I can record everything that's happening while I go through-- just in case someone does try to act inappropriately. I doubt that merely turning the recording capabilities on my phone on will do the trick...