The other part of the problem not discussed in this article is that many services now require digital ID. Banks don't really have many physical locations any more, etc. So not having a digital ID is seriously impractical, and it didn't have to be this way. That is IMO a big factor for why digital ID is receiving so much flac: "Digital ID isn't something everyone can have, and for the corner-case people, the alternatives are drying up due to over-digitalization"
In my country during covid banks virtually eliminated the cash. There is maybe one branch left per major city dealing with cash. The few remaining branches are "lounge areas" where they tell you to set up their app and do everything by yourself.
Yep its basically the same in Norway. I live 20 min by train from the capitol - we used to have multiple bank offices in the downtown area. They are all closed now. My now retired father got a shock when he, not really keen on dealing with technology, was unable to find a physical office to visit.