In Denmark photos are expected too. The argument is, that it gives you a better impression of the person. You do it for the same reason as why you show up to the interview in a suit and tie.
As for the race arguement: If the employer is going to cut you based on race or looks, it's better to save both of you time and cut out the first interview.
It is also commonplace in Japan and Korea. Other people in this thread seem to imply this is a 3rd world kinda thing. Not at all.