When you say "Americans," you're talking citizens, correct? I'm finding it hard to wrap my head around "millions" of people with no form of ID whatsoever (nevermind a specific "voter ID").
I don't have a problem with election day being a national holiday; would that really affect voter turnout? The people you are characterizing clearly aren't working, since they have NO form of ID, no bus pass, no work ID, nothing. Maybe they are the working poor, illegal immigrants -- in which case they shouldn't be voting, anyway, right? I think you are guilty of overstating the case.
On voter fraud, however, I have first hand experience. I've probably told the story before, but after Kerry lost to GWB, and Ohio was the focus of the "swing states," MoveOn and like organizations began the process of moving people to Ohio to swing the next election. I was living there at the time, and it was astounding.
Given the current political climate, I think every last voter should have to prove they are who they say they are, and they should have established residency in the state they are voting in.