You are overthinking it. The physical cards to pay and identify yourself are not going anywhere. In fact, the same places that have the digital id rolled out are the places where having one issued is mandatory and often times it's also mandatory to have one in case the police asks you to identify yourself.

When I wanted to get a replacement id to be issued in the year 2019, I had to book an appointment, get to the place and by the time I got the desk, the clerk had the thing open with my face photo from the last time I had a passport issued.

There are less fortunate people, who have the hardcopy id present, but no digital file exists for it (because it was issued before the digital files became a thing) and the paper trail leads to the occupied territory. That is usually months long story where secondary sources are involved and sometimes you have to find a friend who can confirm your identity.

So yeah. Make sure that the issuing CA doesn't get overrun by orcs before the replica thinks and you a hardcopy that is trustworthy enough.

Does any government in the world issue only digital IDs?

There‘s always possibility to have your travel passport as a backup (and when traveling abroad your domestic ID is suitable for recovering passport).

It's probably not a great idea to depend on friends or family to remotely bootstrap you out of a situation like that anyway, given deepfake impersonation scams.