This is a thoughtful treatment of some of the issues. I worked on digital identity in govt, and sovereign identity is considered seriously there. The concepts in the article force the question of what things like security, dystopian, and scalable mean, among others. If I were to articulate the gap in perspectives, it would be that it is between the engineering view of solving problems (e.g. Vitalik's "soul bound toke…
If we try to conflate those kinds of identity problems arise because people who are young, vulnerable, transient, in crisis need to be able to revise both kinds. Unless we are wanted criminals we have a right to be forgotten. And we all have a right to change our minds about things and re-invent ourselves.
I think we don't yet have a mature enough understanding of what identity really means for human beings to get successful digital mileage except in a few limited applications like payment systems or session management. Perhaps that's why the concept of "identity politics" is so prominently at play.