They want you to install an app. Yet pretty much a picture of the barcode is all that is needed. Considering the poor state of security on phones the rights are far to course grained. The app needs to connect to the DMV for authentication means it has access to data at all times. You quickly have a heavily encrypted app that can can expand it's scope of permissions with clueless users.
They will I assume want you to hand your phone to the cop unlocked. Maybe your smart and setup a secondary login with only the licence and insurances apps more probably you handed a cop access to your entire digital life. Is that enough protection to secure the phone from state overreach?
Expand it out will bouncers be able to validate the licence? In effect that means the state knows when you went to what club.
Will potential employers be able to use it? Now the state knows every place you ever applied for a job.
Will stores be able to use it to cash a check (I know how many people will use this that still use checks)
Are fake ID's really a problem primarily it's for buying booze and we along with a handful of other first world nations has the highest legal drinking age in the first world.
What does the phone app add over the existing ability for police to pull up a photo id via the barcode or just name and address on the in cruiser laptops.
How portable will this be one state must accept another's ID. Will they build in the same protections? If so how will they be required to do so and held accountable for failing to do so?
At this point a simple name and address should be all that is needed to pull up a picture ID.