identity just calls eye so there is no difference in how the arrays are constructed. Here’s the code for identity:
def identity(n, dtype=None):
from numpy import eye
return eye(n, dtype=dtype)
As you say, the main difference is that with eye the diagonal can may be offset, whereas identity only fills the main diagonal.
Since the identity matrix is such a common construct in mathematics, it seems the main advantage of using identity is for its name alone.