ID at check-in

I stayed at a major hotel in Las Vegas recently. At check-in they wanted
a credit card and picture ID. I gave them a credit card and my driver's
license as an ID. Before I knew it she entered my driver's license
number into the hotel computer. This has never happened to me before.
When I objected she said "everybody does it now" but that is certainly
not my experience. This really seems like an invasion of privacy in the
time of identity theft. I can only imagine how many employees have
access to that computer. Even when I travel abroad hotel clerks usually
don't take down my passport number. As an American traveling in America
this seems outrageous. Has anyone else had a similar experience?