Seriously. Almost nobody commenting here even took five seconds to even think about what was actually being discussed. It's all just knee-jerk "jack boots are coming" nonsense.
"Internet ID for Americans" - Article title FAIL. This has nothing to do with a government identity of any sort. Nor is it a singular identity, credential, or technology. It's for use in commerce - you know, like OpenID? - but actually standardized so that companies will actually widely accept it. That's why the first sentence of the linked article, the whole point of the news of it, is that the Commerce department would head the effort, not Homeland Security. (Declan McCullagh, I like you, but you should be ashamed.) From the article: "This is not about a national identity card." From these comments: "It's a national identity card!"
"Single point of failure" - Reading comprehension FAIL. The published strategy talks about setting up an identity trust ecosystem where individuals set up any number of identities and credentials, of their own choosing, possibly using different technologies of use as they see fit. Much like the SSL cert ecosystem today provides a means of merchant identification, without there either being a single point of failure or sinister government control.
"Trying to solve a problem that doesn't exist" - Reality-check FAIL. I just don't know what planet you're from. If you're saying that identity theft on the Internet isn't a major concern, then you're seriously misinformed. It costs our economy millions, if not billions, in lost productivity and fraud. That's a valid government concern - making sure that economic activity can take place safely and thrive.
For frack's sake, the same people who were screaming about how Microsoft Passport was a bad idea (and it was, because it was monopoly-controlled) are now saying the free market should solve the problem. Or, you know, that there's actually no problem at all. No wonder it's so hard to get anything done in this country.
Having a national strategy to push towards building a real trust infrastructure is a GOOD idea. Reduces costs, reduces redundancy and waste, IMPROVES security on the Web. Trust infrastructure GOOD. Psycho spasmodic knee-jerk Fox-News "Govmint bad" reactions with no forethought BAD.