Sometimes I feel like both sides are actually just one side playing the long game. IMO the goal is to get verified digital IDs in use everywhere they can so they can lock down the internet to have absolute control. We'll end up paying inflated subscriptions for everything and watching all the ads.
These are the kinds of regulations that are deigned for incumbents because it becomes impossible for new market entrants to satisfy the requirements. I wouldn't be surprised if big tech companies are silently lobbying for this kind of stuff behind closed doors.
With this solution, kids are far safer than under recent UK/EU age verification laws, while adults and their free, open & private internet remain unaffected.