UPDATE: My clever plan to use a PayPal dispute to prove my ID backfired somewhat. PayPal opened a dispute, which allows for an exchange of messages between buyer and seller, but their system immediately escalated it to a claim, which does not. Upon calling them back to figure out WTF happened, PayPal told me the auto escalation might happen if a seller has a limited account or if a lot of disputes have been filed (for example--naturally they won't confirm if either of these is the case).
For their part, Nokeys chat support has been available and responsive, and they tell me they've already refunded my purchase. I did register an account and my orders page shows a status of refunded, although PayPal doesn't show my money back (yet). I'm not concerned; it may take a little time to process.
FWIW, my PayPal and code delivery (and message) email are all the same, but I did attempt to order 5x $100 gift cards, which is a sensible reason for Nokeys to want to confirm my ID. I just disagree that they need a color photo of my ID to protect themselves.
Sorry for the block o text, but I want to qualify that despite my generally negative experience I'm not calling out Nokeys as a place to avoid.
2nd Update: ended up snagging the following cards from Best Buy to get me through this week's sales (lots of indie games right now):
https://www.bestbuy.com/site/microsoft-xbox-live-45-gift-card-multi-pack-digital/5952800.p?skuId=5952800
That collection is 3x $15 + a bonus $5 ($50 total) for $45, and they let me use my Best Buy credit card for an additional 5% back. Not quite as good as the posted deal here, but close enough for now.