It goes like that for most things. You only need to show your driver's license if you get pulled over (which is generally pretty easy to avoid if you're trying) or if you're getting carded for alcohol or some other common use items. In those latter cases, it's not a cop asking to see your license so there's no enforcement if you don't have it or refuse to show it.
Life is largely on the honor system, and for the most part, order is maintained that way. Most of the people operating under the radar seem to keep quiet enough so as to not cause trouble or draw attention.