Nasty problem we have here, eh?
I agree and am very concerned about the issues this law (or any like it) bring up. Too much information too easily accessible to any and all government employees...I would guess all the way down past your local police department to just about anyone who gets a paycheck from the city or county and can provide any kind of reasonable excuse. Add in the track record the Feds already have about losing identity information, and don't forget those tricky little hackers...ugly. And, believe it or not, I'm not one who sees government intrusion everywhere.
As far as the states not being required to follow the law, but losing Federal funding...that was the same thing they did when the speed limit was lowered to 55 MPH. The Feds said "lower the speed limit or we will cut off your Federal Highway funds." I don't recall many states (if any) where they said "we don't want your money", but the list of states seriously considering saying "no" to the Real ID Act is encouraging.
I haven't read the details on this law...are they mandating RFID technology in the ID? If so, that is exceptionally bad. As far as the concern about being identified if you go to a political rally or something...too late. Facial Recognition technology already exists (though imperfect) and there was a big controversy a year or so ago when the police wanted to scan everyone in the stands at the SuperBowl.
On the flip side, there really needs to be a way to identify those who have a legal right to be in the country and those who don't. This is not about the immigration discussion, but rather to point out that we live in a world where there are people who will do anything to hurt innocent people if they think it will harm our country. While there have been native-born American citizens that have performed attacks against the US (remember the government building in Oklahoma City?) so it is no guarantee that a terrorist will be from outside the US, there is a strong possibility.
So, how do you provide some semblance of national security without trampling the heck out of individual rights or privacy? Beats me, but the Real ID Act scares the crap out of me, and I don't like it one bit. Ben Franklin said "Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety." These words are as true now as they were then.
.....Laurie