In the end it comes down to the actual implementation. The article states that the data stored is just a hash of the iris scan. From that hash accounts can be created that can be used to verify against that hash to make sure your are an actual person. According to the twitter post multiple accounts can be created and and used for verification independently, so indeed providing some privacy. So the question that remains is can the world id be used to discover these accounts, which would be bad. That question remains unanswered.
There is of course the point that you have to trust Sam Altman that the system works the way it is claimed and no actual biometric data is stored.
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