You are correct. What is really sad, is there is no picture or anything to indicate to the child who is the father. The child can never point to someone or some picture and say "that's my dad." I also see it as a degrading society. More and more men, especially as these children become adults, will have less and less respect for women. Then there is the Islam angle. I'm pretty sure the Muslims are not going this route. They are having children the old fashioned way and indoctinating the kids too.
That's not true. The majority of sperm banks offer photos of the donor, both as a baby and an adult. They also offer 'open' donor agreements where the sperm donor can choose whether they want any future contact with children. Some donors even write letters to their future children.