This is the digital age and while we have no choice but to keep pace with the time, these days it seems nearly impossible to run personal lives with such "digital identity".
But in the perspective of questions whether to avail of the opportunity of web2 or web3, the differences are enough to choose what to avail of mostly.
China already cripples their unwanted citizens through their centralized digital identities. If we manage to create a system where we don't use these identities but the hive ones, and frienldy entities on hive provide services based on these digital identities instead of the government ones, we'll be gold.