It's not just government services (such credentials already exist but its a hodgepodge of self-rolled services for each agency). This ID will generally be equal to the real ID so it will be used to verify citizenship to employers, banks and even the store you order alcohol from. You can even use it to prove that you're of age to the barman irl.
In my opinion the Norwegian variant of this, is an important part on making it easier to switch things like banking or insurance provider. Without BankID I think the competition between these type of providers would be even worse.
