The idea is redacting for when you need to send your IDs primarily online; caring about your privacy and avoiding copies, indeed.
You could always do online check-in in the hotel, showing the needed info only, and when showing up physically you simply show it fully to the receptionist, for instance.
As someone who cares about data protection; I want to believe I should not accept the fact that all our data is still online available for bad actors; for which I still find necessary tools that make this endeavor easier.
Does this answer your questions?