Terrific. I mean it.
So many people don't understand the basic laws of identification cards:
1. There is no technology that cannot be counterfeited.
2. If I can make people think that all they have to do is verify a card, rather than identify me, identity theft is pretty easy.
3. This will be the master card for stealing people's identity within two years of its introduction.
4. Within four years, any terrorist who needs one will be able to counterfeit one, and no one at the border will question it.
Result? Such a card would
a. Decrease security.
b. Increase identity theft.
c. Annoy many people needlessly.
Of course, that requires thinking about consequences.
Most in this country can't do that anymore.
Good analysis. However, you've missed out the ultimate point -- the negative results you cite (quite accurately, IMNNHO) -- will serve as the excuse and/or impetus for the NEXT round of reductions of personal liberties.
You nailed it perfectly. This should be called the "Make life easy for Criminals, Terrorists and Tyrants Act."