The legitimate purpose of a driver's license is to prove that the person carrying it has passed tests of driving competency. For that purpose, there's no need for it to identify the person carrying it beyond establishing that that person is the person who owns it. That could be accomplished with nothing more than a fingerprint on the document. If the person carrying it has a fingerprint that matches, then he's driving legally. The police don't have to know his name, address or anything else unless they're arresting him for something (in which case he has no obligation to give them that information -- 5th Amendment, remember?).
I definitely don't support people having to show their papers on demand - I think you're fear mongering. There are plenty of other satellite benefits for having national standards for IDs. For instance, if a manager of a liquor store in Oregon sells to someone with an ID from Delaware, there's really no standard in validating whether or not its real or not. If he serves them and it turns out their under 21, he's still liable. To be safe, he or she would probably have to turn down drivers licsenses (sp?) that he is unfamiliar with. I know how much you libs hate the idea of lost business.
But lets say someone is pulled over for suspicion of X. The police now have at their finger tips an efficient tool in determining who and what they are dealing with. Ultimately there will be administrative savings in this - perhaps a tax cut? I know how you people luuuuuuuv tax cuts.
I think it can definitely be a great tool in the WOT for both domestic and foreign perpetrators. Finally getting local authorities on the same wavelengt has it advantages.
Having said that I don't think they should be mandatory (I'm debating on whether that should hold true for foreign residents) and I don't think that people should have to show their papers on demand. The basis of your discontentment with these national standards seems to be that, but it doesn't have to be that way.