> driving is a privilege

Yet you can have a license without owning a car. They don't issue you a plate to use. So the plate is clearly for something else, mainly I think, to indicate that you've paid the appropriate registration fees on the vehicle. The plates are tied to a vehicle to prevent the obvious "plate swapping" attack that people would use against this regime.

> roof that you've paid a bit for the infrastructure

Actually those are gas and sales taxes, are they not?

> you're required to wear the wrist band.

The wrist band need not have a unique identifier readable from several feet away emblazoned on it in order to function.