I believe it's still possible to use the physical card with a reader for many things.
I think some services still don't work with the CMD. Recently, I had to ask for changes to my car's document, and it seems it's only possible with the card itself. (https://www.automovelonline.mj.pt/AutoOnlineProd/)
Notably not the Netherlands. They've got the ID card chip (as required internationally iirc) but I emailed them once to get the public key so I can verify signatures (this was like 2016, I was still in school) and they said it was for governmental use only. It's not meant to be used by commercial entities
Why the EU decides to go with the bad example rather than the good example, I have no idea. Both ways achieve the stated goal of age verification and even the possible goal of universal ID tracking, without disallowing you to do whatever you want with your phone's privacy settings