Palau ID is also perfect for digital nomads that need some place as their official address.
And just having an actual government ID from a country that have all incentives to treat you well is very useful, in an era with ever increasing state surveillance and control. It's great for all kind of situations where an ID is required, checking into hotels, visiting exhibitions, picking up DHL packages, purchasing alcohol, entering nightclubs, signing up for all kinds of services, at police controls in third world countries, and yes even opening accounts at crypto exchanges (but not all).
I spend a lot of time in West︀ Africa, and there is really no difference between the Palau ID and other IDs. Like︁ a local official will have just as little clue that say Latvia is a country︂ as that Palau is a country - but will accept both, cause he sees that︃ you are obvioulsy a foreigner. Palau ID makes it possible to go out and leave︄ all other IDs at home.