1). Please see response to Arthurs post...you do NOT need to carry your driving licence...a popular misconception.
2). As a law abiding driver and having been at the same addresss for numerous years i do NOT have a photo on my driving licence. I also have no desire to change it when they now charge extra to issue a photocard type licence. My licence is valid and thats all that is required. The licence issued to me is not a convenient size that one would want to carry it all times.
3). Identity theft can and does often happen without you being aware and it can be some weeks before you discover it has happened. In that scenario it becomes increasingly difficult to recover from it which really was the sort of situation i was reffering to. Of course you are correct that on discovering the theft of any important documents you should notify the appropriate authorities and the police as soon as possible.
4) forgery of documents is now becoming the interest of organised crime and consequently forgeries of important documents are becoming more and more difficult to detect.
5) Yes, fingerprints would prove your identity but most law abiding UK citizens have NEVER had fingerprints taken. Having them taken as a matter of routine would be seen by many as an erosian of our civil liberties and contrary to the speech (posted above) by Nick Clegg.
6) you say you dont mind authorities asking for your ID (As long as they are Nice to you)....but i think its exactly that point...in this case the Immigration Officers were found to be NOT being nice and infact demanding non white people produce ID.
7) Failure of immigration in this country is down to successive governments allowing EEC member countries people having the right to seek work here and very little to do with Non EEC country people being here. It also has to do with inadequate border controls and the fact that no checks are made on those leaving the UK. How can you control what you can't even count?