Honestly, I really wish the US Government would just issue national IDs, including an electronic component with a standardized interface (cheap enough to be deployed to any PC, and usable for remote applications in a secure way). This would make identity theft nearly impossible (or at least much easier to clean up after-the-fact), and kill off many social engineering attacks and the need for passwords in general.
The usual fear is that a US government ID would create some kind of big brother system. The thing is, we already have that - the US doesn't need an ID to identify everybody, since they operate on such a large scale they can just scan every yearbook, facebook account, email, security camera, etc to identify everybody all the time. They undoubtedly assign a unique ID to every person they identify, so they basically have that government ID system already, and we get to suffer all the downsides of that. What we don't get to experience are any of the upsides, since while the US government might be able to tell who I am while posting this, nobody else can.
There is also no reason that a government ID couldn't be used in a semi-anonymous manner. When I authenticate to slashdot they could give slashdot a unique identifier for me which is traceable to me upon issuance of a warrant, but which is different from the ID they issue for any other website. That means nobody else can log in as me to Slashdot, and I don't need any slashdot-specific credentials, but I can still be a pseudonym as far as Slashdot is concerned (but I can only create a single account). We could even allow somebody to have multiple IDs for a single domain all traceable to the same real person (with a warrant). Obviously there needs to be a lot of policy around who can insist on having a real identity vs a pseudo-one, or when somebody is allowed to have sock-puppets, etc.