How is DIDs not privacy preserving? You chose what information you put in it. Also, Coconut Credentials seems to be for "distributed ledgers" while DIDs are agnostic in their usage.
Sorry, I wasn't meant to be abrasive or anything, it's a genuine question. When you say "For privacy preserving IDs..." it sounds like DIDs are not privacy preserving, while the people who worked on DIDs did in fact think about privacy when designing it. But maybe I'm understanding your previous comment wrong, sorry if that's the case.