It's the database, dammit!
I have no objection even to being forced to carry photo-id at all times and produce it on demand to reasonable persons of authority in reasonable circumstances (which is the law in several European states). I'd get a photographic driving license if the government didn't charge me for trading in my non-photographic one (and again every ten years thereafter). I have a passport (which I don't carry in the UK only because it's too big) and an employer-issued photographic staff-ID card (which I do).
What I object strongly to is the centralized database of everything which the former Labour government planned to introduce on the back of its ID cards, to log and control every aspect of our lives, and to make a start on constructing a UK-sized panopticon prison camp. Just because we can, doesn't mean we should, and nowhere more so than in taking away the right to any sort of privacy at all (except, probably, for a privileged few rulers).
So keep the recordings of ID completely decentralized, and forgotten after a reasonable time. That's a time-tested way of making life somewhat harder for the criminals, that really doesn't harm the honest very much.
BTW provided you lie and say you are British, you *can* check into a hotel as Mr. and Mrs Smith. You can even do it legally. In the UK, there is no law saying you cannot call yourself whatever you want, provided it is not with criminal intent. Sleeping with someone else's spouse may be immoral, but is not a crime. It's also an example of a freedom that would be all but gone the moment a national ID database went online in every hotel.