Ceasing To Exist Approach

The Charm does not say that your current Backgrounds recede, unless they are an effect that targets you based on your identity. (One can make a case for certain Backgrounds that this applies.)

It also doesn't say that they must stay available. I mean, barring weird anonymous access stuff, you lose your Resources and Allies while you're being someone else. You might be able to use Riding the Dragon on your Acquaintances, but it's iffy whether they'd recognize you, and if so, as who.

Saying that all Backgrounds recede opens some cans of worms. Breeding is the worst of them, since you can Pattern Spider Touch a Dragon-Blooded into a new life. Savant's odd, too. But just saying that all your stuff goes Elsewhere seems valid. It's harsher than transporting it to a prearranged location near your new life, and it's nicer than dropping it all on the ground where you were.

I'd recommend accepting the Storyteller's ruling, using some of the Background points the Charm gives to buy Artifact, and start thinking about nefarious ways to make this free access to Elsewhere useful. :)

I'm also not sure what you mean by saying that Sidereals can see who you are. For most purposes, they really can't.

Imagine that you're impersonating a Solar, and the Wyld Hunt shows up.

YOU: Er, hi, Chejop!
CHEJOP KEJAK: Hello, foul Solar. As noted in other threads, I possess all of the Sidereal martial arts listed and several others besides, which I will now use to kill you.
YOU: Er, no! I'm a Sidereal!
CHEJOP KEJAK: You are the Carp of the West, reincarnation of Meredith Badger's-Breath, whom I slew with my own hands when we last fought your kind. Do not attempt to deceive me with your patent but not total lies… . heh. I love that phrase. I made it up myself.
THUG: Er, boss …
THUG: Right, boss.
YOU: No, look! I'm using Perfection in Life!
CHEJOP KEJAK: Fool of a Solar! Do you think I would not recognize the Husband-Stealing Devil Dance?
YOU: We had dinner last week! I got drunk and stole one of the peach—-er, I mean, some of the punch! You commented disparagingly on my dress!
CHEJOP KEJAK: I commented on the dress of a Sidereal, who does not exist right now; your contention is irrelevant.
YOU: Look! Generalized Ammunition Technique! I'm shooting you with this haddock!
CHEJOP KEJAK: Ah, the legendary Haddock Arrow of the Carp of the West.
YOU: I'm lowering my target numbers!
YOU: I'm lowering my target numbers!
CHEJOP KEJAK: *muttered* Look, I'm not supposed to know about the game mechanics, so don't blow my cover, okay, Anathema?
YOU: But surely you've caught on by *now?*
CHEJOP KEJAK: Well, I admit that there's a faint possibility that you're in fact that Goldy who doesn't exist right now, instead of a Solar using some kind of impeccable alibi technique.
CHEJOP KEJAK: But I've got this Wyld Hunt all *assembled* and stuff, and the men get feisty if I send them home without tasting Anathema blood.
YOU: Aren't *you* Anathema?
THUG: Hey, yah.
CHEJOP KEJAK: … I'm not here!
THUG: I hate it when he does that.

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