Without spending 20 minutes to watch a citizen argue with a cop, in answer to the title question I would say that if the government representative (regardless of who) has a reason to ask about identification of a citizen, then yes it is reasonable to provide that identification to the government representative. For example, if a crime has occurred nearby, and the citizen may be believed to be tied to solving that crime in some way, it is reasonable to seek the citizen's ID. If you are trying to interact with the government, such as to vote or register a relationship with the government similar things, you should expect to provide your ID.
The man was an insurance adjuster legally allowed to be where he was. He chose not to give his ID because , legally, he didn't have to.
The officer(s) wrongly state that the driver must give ID when requested, absent reasonable suspicion
of a crime, and failing to do so amount to obstruction.
It's disheartening to listen to so many police officers not only be incorrect, but to continue to press the issue after being told they were incorrect. It's disheartening to see these officers believe they have the right to demand ID with nothing more than vague suspicion of a non-specific criminal activity based on a call from an anonymous source.
The worst part is the fact that taxpayers will foot the bill of any lawsuits stemming from this sort of behavior. There is no incentive to behave any differently.
Do you really want the hassle? That's what it amounts to.
OK, maybe you aren't legally forced to show your ID.
Do you really want the hassle of not showing it?
That's really what it comes down to.
The flip side is that police are used to people handing it over and (incorrectly) think they are
owed ID when asking. When a citizen comes along and denies that request, the officer immediately thinks the person is being uncooperative and "if you've done nothing wrong, what's the problem". This can end up good or bad, depending on the patience of the officer(s). The officer in the video even stated that the driver is lucky he wasn't ripped from his vehicle.
We also saw in this video that had a home been broken into at a later date, the first person they'd be looking at is the man who gave up his ID though he'd done nothing wrong.