>have a generic plate that can go anywhere

Functionally, that's what already exists - the standards are dimensions and readability. There's no CA smog inspection station as you enter the state, this is about people abusing a loophole. I spent all 4 years of college in CA with a CA driver's license, a car with out of state plates, and zero Kafkaesque issues. Maybe tax avoidance loopholes are Kafkaesque because they're not how anyone is supposed to do things.

As one more wacky way to do it, some countries rivet the license plate to the car because the plates never change. They're basically shorthand for the VIN, so the owner and their place of residence don't matter, only where the car was first registered.