and look at all the scenarios where this happens. how did you get your bitcoins out of glbse? sendt in id verification. how do you get your bitcoins out of instawallet today? send in id verification. now how do you get your usds out of bitfloor? send in id verification. see a pattern? these services get advice and all of a sudden they need your id.
It always amazes me how many people in crypto think they should be able to cash out any amount of bitcoin without ever needing to show someone ID. In the European union it's illegal to deposit/withdraw more then 1000 Euros' without giving ID. I don't know what the number is for America but your required to "know your customer" when dealing with money. So yes- you have to give your ID.
Who knows what instawallet is up to though. They seem to need your id for the legal claims process.