Worth calling out imo, in our current world you have recourse and an ability to "recover" from identity theft (to some extent). If the government controls your identity and revokes some piece, what can you do?
What stops them from doing that today? What stops a government from not renewing your driver's license or passport or not issuing a SIN/SSN or leaking your SIN/SSN?
How about just denying you federal services _after_ providing ID? How about putting you on a watch list?
Governments have been using IDs to deny services to oppressed peoples since IDs existed, but I think the options that leaves you with is to fight for a free and democratic government or not have IDs.
I don't disagree that there are ways the government can deny you service now, just mean wrt a non-government example like identity theft, you at least have some path forward.