Yes. But you can still be online without the government knowing who you are, if you're not sloppy.

I don't think so. They can track everything. ISPs are in their pocket, Mobile providers too. Most public WiFI spots track your connection to them as you walk by. Cookies link your identity even if you are using Tor. And Facebook can link your account ID even if you don't run any of their apps. Google does the same. Apple does the same. Samsung does the same. There is no way to participate in the web without leaving traces to the government.

So the solution, opt out entirely.

Not really. You can use a nym, but that only protects your identity from other plebs. There are some benefits to it. The government controls too much to be fooled by simple tricks.