Virtually every country outside NAmerica will ask foreign nationals for their passport, and most registration forms request such information, at check in. And most residents in the world have national photo ID cards, and must carry them at all times. Of the advanced world, the US has the lowest ownership of passports, which reflects two things: an aversion to ID cards, and an ignorance of how the rest of the world operates.
In some respects, this is an anachronism, in others it is required by local government/police officials. In most of the EEC, filling in the passport number is no longer required. But you cannot assume the entire world is governed by the lax attitude towards ID as the U.S. is. You may consider it an infringement on your freedom and liberty, but they see it as an added security precaution.
You can chose to stay or not stay at a property that asks for photo ID, but they also have the right to ensure the person staying there is who the person says s/he is. Sure, ID can be forged, but 99% of people are honest and have true ID. If you have nothing to fear, what's the problem here?
Sure, it's first step in a slippery slope to a totalitarian state. But my god, your bank knows more about you than the government in these days of database marketing. Events since 9.11 have shown the Emperor has no clothes, that Big Brother does not reside in Washington, that officials there are drowning in the miniscule amount of information they already have, and they couldn't link it together if they wanted, let alone track us down based on it.
I would much sooner stay at a hotel that asks all guests to verify their identity, than one that takes no notice.
I have never had it happen in NAmerica, but always present my passport, credit card and hotel elite card when I check in anywhere else in the world.