Personally I have always had a sneaking suspicion that the records have been kept, In spite of the fact it's supposed to be illegal to do so.
Look what Snowden opened our eyes to that otherwise would have been denied to the bitter end as tinfoil.
On it's face, the system if used as designed seems harmless enough.
Then there's the people running it....
of course they are. They are being kept by the FFL's and can be searched at any time the BATFE feels like it. It's their work around they aren't keeping the records. They are forcing the FFL's to do it. That is until a FFL closes down. Then they have to keep them. Oh wait. Thats against the law.