Age restrictions + VPN bans + encryption restrictions + client-side monitoring + restricting general purpose computing.. It's just rapid descent into digital fascism set up by people who have no ability to see how the dots will end up connecting.
I am sorry you see it this way, when the very subject at hand is a practical example of how the EU has planned and built a wallet around the very same ideas you seem to cherish.
Unfortunately, now that it comes to the news cycle, it’s easy to get outraged around misleading headlines.
I encourage you to invest time in researching what the EU has done in the past decade around digital identities and their framing around privacy questions on this. I hope you will find, as I do, that it moved the needle in t he right direction.
I think they absolutely have the ability to see it, it's part of the value proposition for them.