They're not right, but they're not wrong either. The actual problem is that there is no political will to reign in the ongoing abuses of the identity system that we already have. For instance, many businesses demand your driver's license number simply to return a purchase even though you have a receipt. This information is then backhauled to private surveillance companies to sort you into their model of social classes, permanently stored with no accountability or ability to opt out. If a technically-better identification system were implemented, feeding the surveillance industry would become mandatory for even more basic transactions - for example supermarket cards.