Reading the Wikipedia article on group action, I am wondering, why are the axioms stipulating that a group action obey both “compatibility” and “identity”?
If a group action is merely a group homomorphism from a group $G$ into the group of bijections on a set, that is, $\operatorname{Sym}(X)$, and a group homomorphism automatically sends the identity in the domain group to the identity in the range group, wouldn’t it suffice to merely require the “compatibility” condition and drop the “identity” condition?
What am I missing?
The "homomorphism from a group $G$ into $\operatorname{Sym}(X)$" interpretation is equivalent to these two axioms; you need both axioms to imply the homomorphism interpretation and vice versa. The Wikipedia page that you linked states this pretty clearly: