States have broad power to do what is being feared in the thread and haven’t already and to think that they’re waiting for this final piece of the puzzle to enact some insane regime is laughable. They could do that right now without the internet at all.
Social media is probably not healthy and kids should probably not be on social media. Age verification and age limits for social media will be a good thing for kids.
Instead of fear mongering, finding a middle ground, like governments adding some rules and protections on how this information or system is used is probably a better response.
I might be in the minority, but I think incorporating an identity layer into the internet itself should happen with the right protections for users and should have happened at the beginning of the net and is probably a result of lack of foresight by the creators of ARPANET.