There is a certain arrogance in pushing people into using computers against their will by leaving them no choice, which is what this is. The reality is that some people just can't come to terms with using computers, and some people who truly hate them. I personally know several people who, no matter how much one tries to teach them the fundamentals, just can't absorb how to do even basic computer actions. While it's easy to be contemptuous of such people and believe they're not really trying, it's their reality and nothing is going to change it, just as some people can never become good car drivers.
The government should put it's services on line, yes, but the clear implication is that it hopes to reduce or eliminate other outlets of it's services, which will not be good for a number of people who will need them because they can't learn to use a computer.
Then there's the matter of having to pay an ISP every month to access the internet to be able to do this ...