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Fuck Cars
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I don't know about France, but the Netherlands requires that everyone register with their local town council, so determining residency here would be a simple matter of showing your ID (which is also required). So that at least should be no extra cost.
Sure, but even that's not cost free as you either have staff/equipment verifying IDs to allow entry to platforms. In the case of roadside stops, you're increasing dwell time to verify IDs, which extends the route time, which means more drivers and vehicles to provide the same service level
I think that you misunderstood the requirement. You go to town hall and they give you a transit pass; the same pass they use now. There is nobody checking ID on the transport itself.
Then it's a cost to issue transit passes and check them...