Let's step back for a second
When China introduced this as a regulatory requirement a decade ago all Eu and USA politicos joined a howler monkey chorus despising the undemocratic nature of the Chinese approach and how it violates human rights and yadda yadda yadda yadda. Same as the same politicos and media doing a howler monkey impersonation when one of Putin's first moves became installing official taps backed by a legislative mandate into all SPs which fed something (nobody till this day knows what) to FSB. Hoooooooooowl.
So, what are we doing now? We are quietly over time adopting what Putin and the Chinese are doing. The sole difference between us and them is that we are doing it clandestinely, while they are doing it above board. No comment which is more "democratic".
So, let's step back for a minute. There are two ways to look at this.
1. The anonymity of the Internet is an essential freedom.
2. The Internet natural development route is over time to stop being anonymous and the identity of each and every user and device to be known.
Realistically, we are already very close to 2 anyway. The sole caveat is that a few chosen ones like Google and its dear 3 letter associates have your identity (unless you are in a country where you have to identify yourself to use the Internet). Personally, I would love to go back to 1 - it has some essential values for whistle-blowers, emerging democracies, etc. However, the more realistic option is to actually go to a strictly controlled, regulated and legislated version of 2 which is no longer a monopoly of Google and the No Such Agency. And no howlers please.
By the way - as far as the shop owner asking for your identity - it takes half an hour to integrate chilli-spot into either FaceBook or Google or other large 3rd party auth (f.e. in Germany - T-systems). They do not need to take your passport, what the ruling obliges them to do is to ensure you have authenticated somehow in a way which ties you up to a traceable identity. That is technically trivial.