I'd reply: "My new policy requires YOU to provide me a picture of yourself AND your Lufthansa photo ID...so *I* know I am sending my information to an actual qualified representative of Lufthansa."
Stalemate
Honestly, 74 posts in- there are a ton of reasons Lufthansa WANTS this- yet no legal reason they can REQUIRE it (assuming it isnt German law and they failed to describe this in their Ts and Cs.) I dont care if there is no risk of ID theft, or if LH has some good reason for wanting it.... the reason *I* wouldnt do it is simply because I dont want to and never agreed to it when I bought the ticket.