> Having a physical card fallback here is a necessity and nothing in these proposals shows that the physical card ID is going away.

It doesn't have to go away. Once the capability is there, they can and probably will simply make it mandatory to even so much as get an internet connection from your ISP. No unbreakable ID chip? No internet for you.

The "fallback card" is exactly what added the necessary friction that prevented everything under the sun from demanding these sorts of verifications out of everybody alive.

It was somewhat tolerable when it was just a financial transaction. It's still highly problematic given that AML/KYC laws are just the financial arm of global warrantless mass surveillance, but at least it was contained to the financial domain and it was possible to avoid credit cards and use cash instead. Putting this stuff in every computer kicks it up into 1984 territory by allowing tracking of anyone posting wrongthink online.