So all of the legit providers will be required to collect ID, and anyone not willing to will be funnelled onto the sketchy providers; which I'm sure won't backfire at all...
At the moment, it's network effects that are the biggest deterrent to using these technologies -- at the moment I don't want to browse eepsites or .loki domains at the moment although I think the technology is interesting -- because the use cases are "normal" consensual porn, horrific illegal porn / CSAM, illegal drugs, and organised crime, none of which are me. If they manage to drive even 0.1% of the population towards talking about, say, cat pictures, unreal tournament matches (gamer-to-gamer communication is itself banned under these proposals without age verification!), or something that normal nerds would like, then (a) the popularity of these methods would explode; (b) the ability of law enforcement to surveil them as proxies for genuinely bad stuff would be significantly hampered; and (c) I think the net result is that more people would be exposed tangentially at least to criminality than before.
It's a shockingly short-sighted proposal. I wrote to my MP about it; her response was basically "We have a difference of opinion".