Others are doing it already. Doesn't make it right though.
It's also worth saying that these operators are full of short term thinking management and often live in a fantasy world rather than real world. Sadly the current situation in the bus industry, there is so much self congratulatory nonsense, that these people in offices often forget or don't care the real world impacts of their decisions. On the merry go round of failing bus management, it doesn't matter if the decision you make is wrong, the worst thing that can happen is you get told to clear off and you start the next day ruining the next company.
You seem to think that no bus company manager has any brains nor anybody in a public body. Yet whenever I've challenged you on your experience, you act like you're in witness protection. Some of my best friends are bus company managers - Managing Directors, Commercial Directors, Ops Directors and you have absolutely no idea of the considerations that they have to negotiate.
Is it that much of a problem that the good people are having to suffer as a result of the bad actors?
Yes it is.
Moreover, I am surprised that you haven't mentioned Avon Buses who went out of business. Not a perfect firm but not a faceless corporate entity ruled by "bean counters" where idiot managers can simply reboard the gravy train of untold riches. They may have made mistakes but they croaked because when Merseytravel introduced the MyTicket youth travel ticket, they saw a notable decline in cash fares. Turns out there was no require to show age ID and would you believe, people began abusing it. Who'd have though it - people fraudulently buying tickets?
It's a big enough problem on the trains with a closed system of gatelines. So even with revenue protection staff, it's far from easy to catch offenders. 'And if you think that it's because people no longer care because they're disenchanted with evil bus companies.... Really? How does that explain the massive fare evasion on the London bendis (especially route 73 where it was known as the free bus). Frankly, some people will avoid payment for anything and that's a feature not of the bus industry but life in general... it's why we've always had shoplifting, or why agricultural diesel has red dye added to it.
So yes, there are bad actors and it can be enough to make a bus service unprofitable.
As for a passport or birth cert rather than a PASS ID.... The PASS ID costs £15 and I'd suggest that most 15 year olds don't have one but that they do have a passport or a birth certificate. If you're genuine, you're more likely scan a copy and it'll deter those who are abusing it which is an increasing problem.