How does it reduce your individual freedom and liberty to require passports for domestic flights? Or to open a bank account? As it is, you already have to show some form of government issued i.d. What difference does it make if it is a federally issued i.d. vs. a state-issued i.d.?
Having a necessary document that is controlled by the Federal Government gives federal bureaucrats one more element of control over the citizen. Mandating a Federal ID for air travel and bank accounts could well lead to requiring it for interstate travel and other commonly accepted activities.
You might not object to going to a bureaucrat with hat in hand, but I do. I do not believe in sacrificing liberty for the illusion of safety.
What exactly does it allow them to control?