If you can follow that logic, you will see that this makes many, many things possible. Anonymous credentials are possible right now and extend to anything. It can represent "this anon identity is a PhD in physics", "this one is a lawyer with 5 years experience in criminal law", etc. But this sort of mechanism starts with being able to say "this is a singular person, with identity verified by X mechanism".
It is absolutely foundational and the opposite of dystopian. It allows us to combat every current dystopian mechanism without creating any additional compared to what already exists.