True, identifying at merchants is clearly screwed up. I expect that to be fixed, and for ID glasses to not be consumed on use for that matter. I still think that's a lame reason for loremaster exist. It's more of a matter of what you lose if you don't pick loremaster than what you gain regarding identifying items.
Identify glass consumed on use is sick mechanic. (Althou repair hammer consumed is OK. )Lore master or Merchant nothing else is required. DOS inventory is literally infested by items. Removing some at all is for a medal.
Have such an idea, that some skills might be usable only in proper enviroment. e.g.
Loremaster >>identify item works in library or in a pub.
Repair & Smithery >> skill works up to 10 meters from an anvil. (and consume some resource, more expensive equipment, more resource is consumed)
Craft >> works up to 10 meters from an toolbox / tooltable.
Magic pockets >>works in one screen. (30m ?)
if not proper environment met, you get just a message where you need to go. However, it requires some smart designe for levels. So an industry station is located somewhere close to a teleport point. DOS1 homestead is a great example how not to create a home location. Whenever I was forced to run up and down again in those huge empty location I spend my time to swearing level designer.