In a classic PKI scenario, the certificate authority receives signing requests generated by an end-user which owns the keychain, and thus has his private key secret.
Consider a scenario in which the CA not only signs certificates, but also generates the requests for the end-user, thus essentially having a copy of all the private keys in the system.
What properties of the PKI are violated in this case? Which attack vectors does this scenario open?
Edit: I should've mentioned this is not in the context of SSL/TLS. Rather, case in point is an organization acting as a CA (and VA, and RA), and creating identification cards for individuals.