DNA storage is a very tricky area ethically. You're dead right that even spotty coverage is sufficient to make all sort of inference, while on the other hand we have much more DNA from crime scenes than we have the resources to process, and when we do process it it can lead to the exoneration of people who were serving long sentences.
Lacko f administrative will ont he part of police departments seems to be the largest part of the problem, if stories of unprocessed rape kits by the hundreds are anything to go by. Thankfully some states have committed to clearing the backlog and not allowing it to build up again.
Computational power probably isn't the limiting resource in DNA analysis (I've known plenty of people who do it in non-forensic applications in the biotech field, and I've heard of various things limiting throughput in any given effort, and computing resources were never on the list.)
ISIS has been using government biometric databases at checkpoints to ID regime agents and execute them on the spot. They had seized facial recognition databases that were largely put together by Americans. When you wind up in these biometric databases you really can't be sure who is going to use it for what. It's not like the data is ever secure.
http://hstlj.org/articles/concerns-associated-with-expanding...