Except for the let's-replace-all-the-logins-part, we've been doing this since 2010. Everyone needs a DigiD to fill their taxes online (the Dutch IRS can fill out most forms for you that way), apply for student welfare or get a drivers license. You can even turn on two-factor authorization, so you'll also have to provide a code from your phone. The reason nobody's worried about this is a) it provides actual use: it makes filing taxes far more efficient & easier and b) there is an opt-out or alternative, paper way of filing those forms most of the time. I'm not opposed to governments providing a standardized login system per se, although this version looks particularly intimidating. As long as it is confined to government interactions it can be a good working system.