But, for things like banking, car registration, etc... we require strong ID'ing, and it behooves society to make it secure.
I still think municipalities should own their own data rather than have it stored at a central federal level, but we need municipalities to rely on something better than a serially-issued social insurance/security number which I have stored in a million databases that can pop at any second.
It's easy to dream of the future dystopia and ignore the one we live in now, where identity theft is trivial.