5) yes this is optional, but with a penalty it seems if you dont want to share. If its truly optional then take away the condition and see how many people opt to display.

The condition was put into place for a reason, people knew this wouldn't go down well with the majority, and for some good reasons.

I actually made a topic on this on one of my established sites, and the reaction i got was much the same as on here. People are really uncomfortable with this idea, and you have to respect that see more i feel.
People may use the internet on a daily basis, but they dont trust it, and never will. The anonymity makes people feel safe using it, thats just the way it is.