The difference between one and two is being able to link two things I did.
If you know who I am, that barely affects me. But if you can then cross-check whether I also went ballroom dancing, or went to a golf course, or went to a sexclub, or went to a ball-game. Then it starts affecting me.
Just don’t consent to sharing your data to third parties for marketing or research purposes. In civilized world there exist laws which give you this right. It is surely not the problem with ID verification or storage.
Giving your data to a website is the same as giving it to a stranger on the bus. Maybe closer to going to a seedy part of town and giving your ID to random criminal and hoping they don't do anything unscrupulous.
It is not the same, it’s a classic straw man argument. First of all, not just some data, but your ID details - this is important detail. Second, not to a random website, but to a website you wish to engage in a contractual relationship and where your ID is actually required. Third, they are unlikely criminal and there are legal protections in this scenario in most civilized countries. Fourth, the way it goes, it is very unlikely that you will be presenting your ID, instead providing attribute proof through a third party. See e.g. Nect Wallet and similar apps. ID verification will not increase your risks of identity theft etc compared to leaks of other PII. Probably the risk will be lower due to higher compliance requirements.