Government Sponsored/Provided Authentication (Score 1)

Federal, State, and local governments provide various forms of identification (drivers license, social security numbers, military ID, etc...). Why not provide free (or for only a relatively small fee) digitial identification in the form of individual and organizational X.509 certificates. The government would act as the CA for these certificates.

Mass certification might encourage increased ease-of-use in "secure" clients. Routine use of encryption and digital signatures, while not full-proof (especially depending on the quality of implementation), would be a big step towards better on-line security for both companies and individuals.

Authenticating its citizens seems like a natural role for a government.

Of course, the Verisigns of the world would oppose this because it would amount to institutionalized competition.