The original idea for the ID verification was broken by design anyway. The only safe and secure way is a chain/tree of trust, e.g. with PKI, where you could generate some certificate just for that particular service, while keeping your root key safe. Then, in the case of leak, the most you lose, is one particular key for one particular service that could be immediately revoked. You could even slap zero-knowledge proo…
I don’t really trust anyone to get PKI right. There’s enough mistakes in the www realm that pretty well prove bad actors will get through. The alternative is do it offline.
The three times I've needed to provide a scan of my passport were: to enroll in a university course, to buy from an e-commerce site, and to become an app developer. None of those orgs really needed a scan of my passport, which can't be revoked like a cracked password, and will now sit unencrypted somewhere until the end of time or until they are hacked and subsequently shamed into handling their customers data more like radioactive waste.