One reason listed is that while the ID is free, there's a fee to get the document required to get the ID (e.g., birth certificate, etc.). This fee was higher, even inflation adjusted, than the poll tax that was shot down.
States should provide the service of a virtual birth certificate for free...that is, agree to send a version to the other agency for ID purposes for free, but charge the fee for hardcopies only. I want them to have no reason to argue this in any future challenges.
It is worth noting that the federal PACER court system has court papers available online for a fee. Pennies per page view yes, but it is all charged.
In fact in some districts, attorneys are required to register for the paperless system and have to file all documents via electronic filing.
This also means that these electronic orders have the full legal effect of the hardcopy.
I think your view is very sustainable by current technology. The real issue is that we are going to have to move to a full “data entry at birth” system. Finger and handprints of all babies.