Conceptually, I think this is a lot closer to where things need to be. I do understand that the application does fall short in some critical aspects of security though, and on that basis it would still need more work to be suitable.
I understand and agree with the general sentiment of resisting the surveillance state that is dominating tech ever more in this space of ID verification, but this looks to me like it would be okay if the app was built with some very strict secure-by-design approach... which it does NOT seem to be.
There should be stronger technical controls availble to keep kids away from the dangerous things online, and I do think governments can potentially play a positive role in that.