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Personal information would be compromised as you said it, but at least if they were paying with Bitcoin, credit cards and bank details wouldn't be compromised. In the end that would save a lot of money to the banks, customers and Talk Talk.
For example, my previous bank in France was charging me 30 euros fee for every new credit card that had to be issued before an expiration date on the old one. This means if my credit card got compromised, I had to pay. Not to mention the damage that hackers can make to my bank account directly by using stolen credit card details.
Bitcoin would still make lives much easier.
True, but it also opens a new way to attack the customer. If your mail address is known as well as that you use bitcoin, you could be targeted with custom malware. Some of these phisihing mails are actually very good and hard to distinguish from the original, esp. after a breach.
E.g. paypal says "if we give your full name, you can be sure its legit", which is utter nonsense if you consider that PP is often tied to a mail address and in light of such a breach the information is easily available for the attackers. Many smart people I know fell for these kind of attacks, because the mail design was copied perfeclty, it had all the usual details and the attackers made the issue sound urgent. The attachment is (or at least looks like) a .pdf right, what could go wrong.
Dont get me wrong here I prefer more services accepting bitcoin payments, but it will not make the service miraculously secure or cause less issues for the customers in terms of a breach. The issues will just be different and it will take time to adjust to them.
The best defense against identity theft and the issues that follow it is very simple: dont gather information you do not must have to offer the service. Talk talk will certainly have to store your phone number if they sell you phone service, but do they need the name and (mail) address if you pay up front?