Being German to me this is a good thing. I lived 32 years without even knowing that something like identity fraud existed. Why is that? Because if someone wants to do business in your name he has to prove he is you. With his ID card.
Then i moved to the UK and learned about identity fraud. The UK have identity cards, too. But they have no pictures, are easy to fake and are send every month by mail. They are called "utility bills".
And for the paranoids: if the government wants to know where you live, they'd ask one of the few energy suppliers. To me it seems a ID card less system has all the disadventages but none of the advantages.