Except for Postgres
I suppose it's a problem if the spec actually says they're monotonically incrementing because it's clear that isn't guaranteed. But that was never a property I wanted or expected out of them anyway.
All of the other issues here sound like misunderstandings or misuses of ids, IMHO
Yes you can shrink it down when things get bad, but if your index is large enough that you care then it is large enough that this reorganisation is going to be costly in time and may slow your system while it happens (or cause a complete lock if your DB doesn't support, or optionally supports and you don't select the option, this as an online operation.