This is madness. Instead, you have a fairly rigorous process for some form of state-issued ID, and allow using that to reduce friction in every other identification process.
In this case, the identity thief fraudulently obtained a state ID, and later a birth certificate, which really does "start from birth". The institutions that issued him with those probably could have done better, but they can't stop everyone, and they need to make some tradeoffs when demanding documentation from decades ago just to let their citizens participate in society.
How does that work for immigrants?
How does that work for kids of parents who do not care enough to keep track of their kids identity documents?
How dies that work for orphans or children of incarcerated parents of children of homeless addicts who are raised by grandparents or an aunt?
As a teacher, I know the world is not so simple.