Forcing people to do things is never a good idea. People better use wallets, where they don't need to KYC themselves. But who is educating them about that? And what happened to @ln_strike by the way? How are the 400 BTC the government bought secured? Who has the keys?
I can only hope that the Bitcoinization in terms of how its implemented (because I have no doubt that BTC adoption in general is good) turns out to be better for the people of El Salvador than the Dollarization 20 years ago.