Just my simple minded opinion but I would think changes need to be made here. Having said that considering a post I read quite awhile back that indicated that the German Pilot's Union considered ACARS data transmission to be a breach of privacy and that therefore LH ACARS data is one, rudimentary, two encrypted, and three can only be read upon approval by the Works Council this will not happen anytime soon with regard to German pilots. Personally, I am in agreement with the 'need to know' principle and as a PAX I would think airline management has a 'need to know' if any pilot has serious mental health issues.
I'm sure we would agree that people who are ill should be prevented from endangering the public. The question is does a 'need to know' policy increase the danger to the public or lessen it. It is my contenton that, on average, it will increase the danger because the threat of losing ones career and livelihood will cause people (especially the most ill) not to seek medical assistance. If I am right, we need to find ways to encourage people along the right path. I really think in this case the carrot will be more effective than the stick.