Who does it serve when people do not need to identify themselves when obtaining government services?  Does this advance or retreat Canadian society?

Using your example, what would you say if a niqab wearer uses someone else's library card to borrow a book?  I say niqab wearer because, behind the veil, it can be either a man or a woman.  Noone knows until a positive identification.  Unfortunately, video surveillance would also be defeated.