I have to agree about this - between the multiple clicks per item and the jumble that is character inventory, even setting the magnifying glass to "identify everything in inventory" (instead of click it, then click an item) would be an enormous improvement.
I suppose that the magnifying glass could even be removed as an item (or at least removed as an item linked to identifying) and turned into a UI element instead, which would have the benefit of not requiring the player to dig through inventory for it (and drag it around close to the items to be IDed).
Of course I'd prefer that we not have to deal with the "identify items before using" rigamarole to begin with...
