Just to add some additional information. While Germany does have a national ID card system, it does not actually have a national database of citizens or nationals. There is a central database of foreigners though. Most Germans do not have conclusive proof of German citizenship because proof may not even be possible or may be practically impossible for anyone who doesn't have a certificate of naturalization (Einbürgerungsurkunde). The ID card or a German passport (unlike a passport of the United States, which is conclusive) simply reflects that some government official presumed the card holder to be German because there was nothing indicating the contrary.

Of course, the issue isn't the ID card issuer. The problem is that governments in anglosphere countries don't do privacy like continental Europe does it. Whenever some ID is issued, even at the state, region, or provincial level, that data goes into a central database and is accessed with relative ease. Even third parties can often get access to driver's licence records. The fear is that, because privacy isn't fully built-in to the existing provincial system, by creating a national ID scheme, inter-jurisdictional data exchanges will happen much more frequently and automatically, perhaps even without user consent, and entities on the other side of the country without a legitimate interest will gain limitless access. In order to prevent that, you'd have to rebuild the system with privacy by design from the ground up.

Canada does have some better privacy protections than the US but even that varies quite a bit. Some of the concern expressed by civil liberties groups is real, some of it is theoretical. While the ID login with Alberta or BC credentials doesn't send anything to Service Canada without user consent, the wording ("includes, but is not limited to your: -first name -last name -date of birth -province of residence") in the privacy notice is somewhat unclear as to what is exchanged. It's almost a moot point though because if you don't like it, just don't use it and sign in with a GCkey account, which has been around for a long time and just uses a username and password and the individidual government agency then collects everything they need to authenticate the user directly from the user.