The threat model is exactly people getting locked out of government services. If this seems silly or not important to you then you aren't aware just how widespread the usage of digital government services are in Estonia.

As one example most government procurements over a certain amount od money happen as e-procurements with strict time limits that can't be changed and bids need to be digitally signed. If you can't access digital government services you can neither access e-procurment site nor digitally sign you bid.