It's not that simple. My meatspace identity is entirely transparent. But online, I'm mostly Mirimir and other pseudonyms. Even so, I've been Mirimir for long enough, and have written enough about freedom, privacy and anonymity that I have a substantial reputation.
That is, one can have a range of identities, from entirely transparent to stably pseudonymous to fleetingly anonymous.
This is the key point -- identity is plural, not singular. It means different things in different context, so requirements change as do the types of identity, data and disclosures used.
The important nuance though is that the 'range of identities' can be tied together on the user's side if done properly. I can have all my auth methods, accounts, personas, data, etc. tied together with a properly designed decentralized identity system, and choose which to use when depending on the context. This is the real promise of decentralized identity -- a connective tissue around the users rather than platforms.
That is, one can have a range of identities, from entirely transparent to stably pseudonymous to fleetingly anonymous.