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Utah tells porn sites to take the P out of VPNs, and it's their fault that they can't
(www.theregister.com)
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I think in the case of Utah it’s something beyond just wanting to spy on people. I think the LDS(Mormon) church legitimately wants to stamp out porn all together among it’s members. The first step to that is of course, getting a comprehensive list of everyone viewing porn, via ID collection. Then hand that list over to the LDS church, who can name and shame members they find on it.
Now, they probably will not be able do this everywhere, but, in Utah, it is absolutely with in their power given how much power it has over the state government.