You're in multiple computers all connected to the internet. Honestly these days we should all just be able to give the police our names and have them pull up our information. It's the same thing. You'll still get in trouble if the picture doesn't match. The ID could come through in ciphertext and need to be decoded using a secret known only to the person to whom it belongs.
It should be legal to drive without a physical license. We're all stored inside the computer now.
My guess would be eventually the fines rack up to the point where it becomes a more serious offense and more drastic measures are taken. Also, a lot of the enforcement measures likely do not fall under the umbrella of "prosecution."
I'm not sure if driving without a license can ever be escalated to a felony, but I'm sure they can do things like impound the car, etc. That would never involve the DA unless it was challenged in court