The Netherlands had a similar system with BSN and DigiD.

I personally prefer it, and I wish the country I live in right now had a better centralized system to deal with the government. It massively reduces bureaucracy and the need for me to produce all sorts of extremely privacy-invasive documents (such as bank statements, utility bills, scans of my driver license and passport) when dealing with the government. Sometimes I even need to mail those things, like, with an envelope.

The government can and will collect all data it needs about you at any given time, no matter if there's a centralized ID or not. It just spares everyone time and effort by removing friction.

Also, I have a very hard time to take seriously someone that unironically says the words "nanny state". It says a lot about your stance on the role of governments and society in general. What it says, to me, is very unflattering.