Earlier quoted context omitted.
Well DID spec doesn't tell us to put identity or related keys in public. DIDs coupled with the VC model ( https://www.w3.org/TR/vc-data-model/ ) allows identity credentials issued by any "trusted" issuer to be validated. Here trusted means whoever the user trusts, be it government or big tech or anything else.
The issue is not other identity information in the DID, it is the identifier mandate itself is antithetical to privacy. Having a global identifier as you go about the internet means that parties can correlate and share information about you. Trying to solve that by isolation (using a DID per party you want to interact with) negative affects their usability and privacy properties with verifiable credentials.
User: I want to use this site.
Site: we need your trusted identity.
User: Trusted Third Party, please make an anonymous identity for me.
TTP: I know you, user; here's your new identity.
User: Site, look here, TTP which you trust says I'm legit.
Site: OK, transaction completed. '
User: (destroys the identity's private key.)
It's not very different from TLS certificates, or OAuth tokens, or even ephemeral credit card numbers. The thing is to have a common Trusted Third Party, and somehow keep the number of such parties large enough.