One reason they ask for this info is because they can't verify you through their normal means especially if you have a public email such as gmail or yahoo which anybody can get with any name and info. When I gave my address and phone number they couldn't verify I lived there because when the info is pulled up it shows my fiance (ex), his previous wife, and her son. I didn't have any bills in my name that came to that address either. My address now has no link to me; no land line phone in my name and it's a rental so I'm sure the address shows up with the landlords name since they own it. A copy of your DL is just to prove you are who you say you are.
It's not just bad sellers they try and protect people from. There are bad buyers as well who try and scam the sellers. I'm sorry you feel that way about it and I can understand with all the internet scams going on, but Mike Longo does try his best to let only legit people on there and keep it safe for everyone.