In my country we have ID cards, and I'd say they work pretty well. Not everyone has a passport, much less a driving license. And even if they have a passport, maybe they don't like carrying it around lest it gets lost (I know I don't, I like it safely locked up at home) They are free, provided you don't have a valid passport (which costs money to get) to make sure even those get one who couldn't afford paying for it. Your address used to be in your ID but then they changed the system because people were changing addresses too much, so now there's a separate address card as well. The only bad thing about this is that if you're a student and want to drive, that's 5 different pieces of compulsory IDs to take with you (including national health insurance card, which has a number without which they won't treat you if something's wrong). If you want a job. you also need a "tax card". This country is really big on paperwork, that's for sure.
...or just paranoid?