Identity is a state of being, specifically a state of being that happens to be constant, consistent, or dependable.
Identity is never an absolute Truth and treating it as such is delusional. The only identity that could be considered absolute is God's Eternal Identity.
Identity at a human level is what occurs when the Eternal Allness of True Divine Consciousness flowing through us collapses into a singular experience, known as "an identity." This is a state of being or expression of the Eternal Allness. It is not a fixed-in-stone inalienable truth.
The Heart's callings toward various experiences of self and of life could be considered to comprise our identity.
Identify is corrupted when it becomes fixed. A fixed identity could be better described as an identification or an identification-as.
The Ego is fundamentally illusory in that its foundation is the notion of separation from Divinity, which physically-spiritually-fundamentally cannot occur at all ever. The Ego becomes delusional when it buys into or obsessively lives from this state of separation.
It is the Ego which fixes and forces the flow Allness into an unmovable and singular I-ness, which is why an identification is delusional: it comes from an innately defunct place of self that is devoid of the Truth of Consciousness or how it functions.
Personal Example A personal example makes the distinction best. I am gay. I do not identify-as gay. Because being gay is simply an expression of Eternal Allness which the word gay simply describes, and this is accurate only in the context of this lifetime.
In another lifetime I may not be gay, and when we transcend the perspective of a body which has sexual components: All That Which I Am, is not gay. I Am is just being the experience of gay in this life. Being gay does not exist except as an ephemeral experience in this one lifetime. Another important point is to emphasize that "I" am not gay, this body is gay. Sexual orientation belongs to a body, not to an I.
To identify-as gay would thus be a delusion; it would make me a singular, lifeless thing when I Am Not Singular, but an individuation of Eternality expressing through a soul into this body.
The Alphabet Community would do well to take note of this esoteric truth and extricate their sexuality, experiences, and sense of self from the increasingly volatile politics and agendas built off the backs of innocent people whose Allness does not necessarily agree or consent to the illusory I-ness of those mainstream policies and all the insanity that comes with such identification.
The Fallacy of Identification
The Rise of Anti-Identification (Enemization, Vilifying)
The Truth of Expression: I Am-ing instead of I Am Thing