In the state of Georgia, drivers are required to carry physical license for the forseeable future.
This is sort of like the early days of applepay. There's a few places where it's useful, and you still needed your physical cards most of the time. Over time the technology saw greater adoption and even now there's still the occasional situation where a physical card is needed or simpler to use. I expect same with DLs.
Ironically, in the "early days of Apple Pay", I was immediately able to use it virtually everywhere in Toronto because in Canada, contactless payments were already fairly ubiquitous in the early 2010s through our nationwide debit infrastructure (Interac).
I had just gotten the original Apple Watch Series 0 and remember walking into a grocery store, tapping my Watch to pay and the lady looked at me confused and wanted to call her manager. I said: look at your register, what does it say?
Payment tendered. Ok, then we're done here, have a nice day.
As for digital driver's licenses, I think this is going to be useful in every day ID verifications before it's rolled out widely to LEOs and airports. Verifying your ID to buy liquor, getting into a bar, etc. The real privacy benefit is going to come from those interactions anyway, not road side police stops where cops already have access to all your info via your license plate anyway.
On the other hand, a bouncer at a bar doesn't need to know your name or driver's license number. They just need to know that you're of legal age. Tapping your iPhone or Apple Watch will come up with a request: Provide DOB? Provide photo? You double click the side button and all they see is that it's you and that you're either of legal age, or not of legal age.