The only non trivial element is how to sign the photo. I guess there must be a way to sign a degraded version of the picture so that even an average scan of the ID card would be verifiable. Or the card could contain a small, cheap, water resistant memory chip which contains the picture in digital format. Then you can have a high degree of confidence in this physical document.
And there could be other usage of that card. Like if you make it a chip & pin so the card could become an unforgeable digital signature (physical signatures are absurdly unsecure too).