if the goal is to "protect children", or just generally make parts of the internet age-gated, my proposal is 100% fine.
if the goal is "surveil everyone using the internet", yes, very obviously my proposal would not be selected, and you will have to upload your id to various 3rd-party id verifiers.
I think something like your proposal actually sounds the most logical. I just think they will bolt on chain of custody tracking to it, while promising it will only be used for finding "terrorists" or something.