I think what he is suggesting is making a new Internet. Long term this will have to be done at some point. We will have to create a peer-to-peer based net that is not connected (or at least doesn't rely on) the current one.

I get that. What I don't understand is why. Does he think the ID system will be required to connect to the Internet? I'm pretty sure that's incorrect.

I think he's assuming that it will be some day. Giving the insane stuff going on the US lately I think that's probably a valid assumption.