There's definitely a market for this. Back when I worked in porn (in the camming sphere), we had a team of moderators whose main job was verifying the identity (especially age) of performers. With over 10k performers, this was a lot of work. And you can't just do it once. You have to do it every time a performer starts a performance. People would try all sorts of tricks, like taking a picture of themselves with an older sister's ID, all kinds of fake IDs, some better than others. Verifying an identity over webcam is no easy feat, those moderators had to be able to tell different passports apart (many, many, nationalities), tease out the fakes, and then make sure that they person in the ID is the same person presenting the ID. Problem is multiplied by the number of performers in the room. Performers who are eager to start making money instead of satisfying the moderators checklist.
Agreed, there is a big market here. I worked on a real estate rental platform where we required ID verification for all listings and applications. At the time we used Berbix (YC company), which is practically the same as Stripe Identity. I would probably just use this Stripe feature today, since we were already using Connect for payments.
Oh I'm not saying Stripe has a magic way of solving this. I'm merely stating that this is a hard and annoying problem, that many businesses would gladly let someone else handle.