If someone does steal your identity in this way, there's no way of getting it back. You can't appeal to any authority, because there's no authority to appeal to in a decentralised system. You literally have to start again and create a new identity.

So you're gambling bigger: less likely to have your identity stolen, but complete loss of everything to do with that identity, with no recourse, if it is stolen.

I'm not sure I like those odds.