Interesting! Blockchain is perfect for many use cases, but I think identity management is not one of them. The lack of interoperability will cause problems.
Other than that, blockchain-based decentralized identities will give people privacy and anonymity but it won't make them accountable to the larger internet community.
Decentralization is necessary and inevitable, but by itself, it lacks something important. Governance!
Blockchain delivers decentralization without governance.
Decentralized identity still has glaring vulnerabilities. I've written about them here https://dkioria.substack.com/p/decentralized-identitys-big-vulnerability