KittyKatkaper,
yup the simple process of getting ID verified by the local JP, Pharmacist etc and sending off your application will be gone. You will have to go at some stage for a face to face with the issuing body or agent to present your original ID documents.
There is still some discussion with industry on this on exactly how it will work. Organisations like Aviation ID Australia who still do the bulk of ASICs for GA will find it particularly hard.