Now this system has been hacked.
Firstly, Aviation ID says the website has been compromised. There is no comment to whether this extended to the back end where the data is.
Secondly, I reckon that history would record that government has a worse record of keeping databases secure than private companies. The state of most government IT systems would be just about as much evidence you need to prove this. I use a Department of transport portal that will only work with windows 7. I had to buy a secondhand laptop just for data entry to this portal. And don't forget the public servants who lost data in USB drives and briefcases that was taken home against guidelines.
In this age, every site will be hacked sooner or later. Do you remember the 2014 Russian ransomeware? If you knew the number of government sites that suffered it, you'd be alarmed. The bigger the organisation, the better they are at hiding these attacks.
The Aviation ID breach is a concern, but I don't think you could say they were are worse or better than any number of similar organisations. And so long as we have this ridiculous burden placed on us, I'd prefer to be dealing with Aviation ID than CASA.
Protest against the requirement for the cards, not against the issuer.