if the purpose was to allow companies to collect people’s ID information

That wasn’t the purpose. The purpose was to condition people to requiring verification to use things. That way when the inevitable digital ID comes along, people will already be used to having to authenticate themselves to access websites and services, so there won’t be as much pushback.

Parents should be in charge of monitoring/limiting their kids access to social media, not the government. That’s kinda a parents job - raising your children. It’s not the governments job.