I do not understand what the Buddha meant when he said, "we do not exist as separate beings". Is he saying that you and I are not separate beings? If we do not exist as separate beings, wouldn't our existences over lap? Could I connect with the same sense, form and actions that you also connect to?
I agree identities and false identities make life complicated and possibly limiting our progression or cause pain. But I also think that having other identities to relate to, or to strive for, gives meaning to our lives.
I can not walk around in a daze all the time, acting like I am nothing and I am everything. But I am a mom, a student, a daughter, and hope to be other identities as I continue in my life. Yes I will loose it all in the end, but Socrates said, "the unexamined life is not worth living". Identities can help us to examine our own identities and strive for higher ones. I think identities can be a plus and not just a "problem".
Melinda