People who don't know history repeat its mistakes.
This is obviously more secure than taking a photo of an analog ID as an "online identity proof" (a somewhat absurd idea if you think about it, yet it's the state of the art in most countries today). But if done correctly (and I do realize that this is a very big if), it even be more privacy-preserving too:
For example, when trying to prove your age to a website, the only thing that site really should have to learn is the fact whether you were born more or less than a certain number of days ago. Not your date of birth, not your name, and certainly not a picture of your face or any other biometric data.
Digital ID can do that (e.g. by asking the secure chip "Is the accountholder born before $date? If so, please sign this challenge using a key shared among all ID cards" or something equivalent). Analog ID requires you to reveal strictly more information than that to a service provider and hope for the best.
[1] Technically a supreme court opinion
Even government websites don't support it for the stuff I would like to use it. So it isn't exactly a success story.
But now that both iOS and Android phones can be used as "card readers", I hope we should finally be seeing some more adoption. Before that, almost nobody had a card reader handy when they needed one.
The EU's eIDAS digital ID/signature portability scheme should also help boost it.
But of course while this is a relatively simple game of signatures and certificates and (afaik) safe and secure it is basically impossible to communicate what exactly is provided at which point in a manner that is understandable let alone trustable by the general public. And the workflow requires you to provide the PIN twice, which is nice (it’s not cached) but also annoying
The last dictatorship tried to erase dissident's identities, kidnapped their children and erased their links with their previous family. As a consequence, Argentina now has a "Right to Identity" enshrined into our Constitution and deeply ingrained into our society and culture.