It is very strange. You don't need to do any of those things to buy a soft drink from a vending machine so the same should be true for bitcoins. Are they worried about counterfeit bills or something? I can understand why an ATM might demand ID if payment was done via reversible means or if there was the possibility of card fraud but otherwise, they shouldn't ask for ID, hand scan, photo, phone number, etc.
That being said, once you have the bitcoins in your possession, it should be easy to destroy the link between your ID and your BTC by sending them to a mixing service, right? Or just depositing them in an exchange might do the trick.
Wow that ATM is a fail of epic proportions. Why in the world would you ever go threw that process for Bitcoin when you don't have to. Why would you invest your money into something if you don't have a clue what it is really all about.
Probably not the best time to get into Bitcoin when you at the bar with your friends and when the price went down 30 dollars I would have canceled the traction and started a brand new one. That way instead of looking at is as a loss you would see it as a deal, but hey that is just me.