Well, I like it, it's certainly better than nothing. Although how much better is debatable.
There is a scarlet letter problem - the people who have committed whatever sin that got them on the list will be identifiable to anyone who sees their drivers license - bartenders, store clerks, banks, etc.
And if you are putting mentally ill people on the list, then your grocery store cashier can ask you - "so, are you a criminal, or are you crazy? Or both?"
One can imagine that various non-gun related businesses might decide not to do business with such people, making it harder for them to reintegrate into society, assuming they are trying to do so.
And then there are the first-time offenders - every offender is a first time offender the first time, and your system doesn't do much to lessen first-time gun offenses.
barfo