Generally-accepted practice for verifying the identity of other cryptography users and extending your web of trust to them usually involves checking a government-issued photo ID, verifying that the picture is the person giving you the key fingerprint, and then verifying that the name on the ID matches the name on the PGP key that you are going to sign. The purpose of this is to know that, when you encrypt to that key, only the person you think is receiving the mail can read it, and that signatures from that key come from the person who claims to use it. It allows you to associate the cryptographic key with a person.
In the present era, where state-level adversaries are on the top of many security-conscious users’ minds, isn’t this a hole? Aren’t we depending, critically, on the very entity we are trying to protect ourselves from?
I don’t think this is a significant weakness, though. To understand why, let’s first consider exactly what attacks would be enabled by the government misusing its identity-certifying authority. It allows them to compromise key exchanges. That is it. Specifically, if Alice and Bob want to exchange key fingerprints, what Proconsul Eve can do by forging an identity document is to substitute her operative Albert, with government-issued documents certifying he is Alice, at the meeting. The result is that Bob will have thought he verified that Alice’s key actually belongs to Alice, when in reality the private key is held by Eve. So when he talks to Alice, he’s really talking to Eve.
Once the key exchange is done, however, Alice and Bob have no need for government-issued ID. They have securely exchanged keys, and Eve cannot fake an exchange to substitute her own keys. The only thing that can be done by issuing an invalid ID card is to compromise the initial key exchange.