The Question have been answered but one could put it this way. Say this "number" is just a number. Sure it looks like an IP'adress. BUT for analogy think of it as a Color value. When routers have only few links this is what think and call SIMPLE OSPF network. the reson for this ID is not obvious. But When the network grows and you have multiple paths between Router RED and router BLUE then the reason gets more clear.
Hello I'm Red
Ohhh I see Blue on link 1
And I see Blue on link 2
And I see Blue on link 3
Higher up in the layer cake there is other protocols that need stable loopback. And if you dedicated some of your IPSpace for Loopback why not have that as your Router ID in all essence it is how you expect to talk, manage and reach the unit at all times independent on what links are currently active, and it makes documentation and problem solving easier.
Original Question, FOR OSPF It is just a number that looks like an IP Address Yes! Case Closed. But Depending on all things considered this could be a real IP on the Loopback and give you the stable peering on other protocol (Say BGP) when ospf is converging due to links failing or other reason.
This is ALL up to you and what you think on how fast things will grow.
haha, yes that's true!
btw, for me the best way of setting this is by manually configuring some loopback address, just for management because it will allow me to understand easily the router who is sending the update, if you didn't do that and allow an automatic election for the router id, then it will choose the highest IP address configured at the loopback interface, and if there is no loopbacks, then the router will choose the highest IP address configured at any interface.