I use a pseudo not necesarily for privacy but to keep my writing world and my lawyer world separate. So yes, I use a photo of me for my author photo. I don't care if people recognize me. If they do, it means they already know me and I'm not ashamed for them to know I write.
If I was using a pseudo because I wanted to keep the writing a secret, I'd probably use a photo of me that was unrecognizable, such as a cleavage shot (no head) or me behind sunglasses or something.