The difference is the link between your digital footprint and real life one. Without a digital ID, there’s a huge margin of using many digital services while maintaining a privacy, even more, anonymity too. With a digital ID, there’s a connected link between the two, further expanding the surveillance capabilities, coupled with AI to profile user’s sentiment and emotions (in Canada, they admit that will be one of the use cases https://www.canada.ca/en/government/system/digital-governmen...), you will end up in some monitored list for just stating some online opinions, if not even getting a visit, or more.

There are even tools are being sold to do that, an israeli company called logivote made a tool to scan the social media and check who bad mouthed the politicians. So expect in the near future, you bad mouth one, you get sent to jail the next day, or debanked.