Whether you protest or not is irrelevent. It's either provide the information or not get served. Thanks to concentration of businesses and services, it's harder and harder to go somewhere else.
Yes, you should be. Especially since the authorities may not be doing enough about it.
In a recent article in the Phila Inqr, the govt did nothing to go after a thief because the value failed to reach a high enough threshhold (there was only one victim). The thief didn't use a sophisticated computer program. Rather, the thief simply copied the victim's driver's license where he briefly worked as a used car salesman, then left town.
There is nothing to stop say a restaurant waiter or drugstore clerk from copying your information illegally, then using it themselves or passing it on. Given that many of these jobs are lowpaid and very transitory, the opportunity and motivation for theft is much higher.
Unfortunately, today's world virtually mandates risky transactions -- extensive use of credit cards and other personal data just to get by.
I don't know the solution.
I do think having a minimal threshhold before prosecuting is very foolish; they should go aggressively after anyone involved in identity theft. Having draconian punishments will mean nothing when the thieves know their risk of getting caught is nil; you will discourage theft by a high certainty of getting caught and punished, even with a low sentence.