One seldom writes the domain of a function, implicitly assigning the largest domain that is sensible in your context. For much algebra (especially graphing), trigonometry, and calculus, the largest domain of interest is the real numbers, $\mathbb{R}$, and the (implicit) maximal domains of functions are subsets of $\mathbb{R}$.
Two functions are equal if they have the same domain, range, and values on each point of the domain. (The range is a subset of the codomain. No one cares if you expand the codomain.) So $\frac{(x-3)(x+2)}{(x-3)}$ is not equal to $x + 2$ because they do not have the same domain: $\mathbb{R} \smallsetminus \{3\} \neq \mathbb{R}$.
Two functions are identical if they have the same values on each point of their common domain. The common domain of $\frac{(x-3)(x+2)}{(x-3)}$ and $x + 2$ is $(\mathbb{R} \smallsetminus \{3\}) \cap \mathbb{R} = \mathbb{R} \smallsetminus \{3\}$. Both functions agree on this common domain, so they are identical. "At any point you can evaluate both functions, they give the same answer, so there is no point of the common domain that can, through evaluation, show that the two functions are different." Two unequal identical functions are unequal "before you get to evaluations" -- that is, they are unequal in their domains or ranges.
A more extreme example: $\log x$ has domain $(0, \infty)$ and $\log( -x)$ has domain $(-\infty, 0)$. These two functions are not equal; they do not have the same domain. Because the intersection of their domains is empty, their common domain is empty and they are (vacuously) identical. (Here, "vacuously" means "there is literally nothing to check because the common domain has nothing in it, like a vacuum".)
When proving identities, we only use this weaker notion of equivalence of functions.
Regarding continuity: "$f$ is continuous" means that $f$ is continuous on each point of its domain. If you delete a point from its domain, you have relaxed the conditions imposed by continuity. "$f$ is continuous at the point $x$" means
$$ \lim_{t \rightarrow x} f(t) = f(x) $$
(where the indicated limit must exist). In considering the limit, $t$ is restricted to only take values in the domain of the function.
(Most people don't talk about continuity of functions at isolated points of their domains. With the above definition, a function is continuous at any isolated point of its domain because the limit becomes vacuous: there are no points in the domain near the isolated point except for the isolated point, so there is nothing to check. It is not the case that the limit fails to exist. In a rigorous setting, you would define continuity as "for all $\varepsilon > 0$, there exists a $\delta$ such that for all $t$ such that $|x-t| < \delta$, we have $|f(x) - f(t)| < \varepsilon$". For an isolated point, once $\delta$ is small enough, the only choice for $t$ is $t = x$, and we have $|f(x) - f(t)| = 0$, which is definitely less than $\varepsilon$.)
Continuous functions are nice. For instance, you likely have a theorem that says continuous functions are (Riemann) integrable (on non-infinite intervals of integration). If you have a function that has a removable discontinuity, then it is identical (but not equal) to a continuous function whose domain includes the ordinate (first coordinate) of the removable discontinuity. Any value you can get from the first function, you can also get from the second function. This means any particular Riemann sum (that is, any particular choice of partition and sample points) that can be evaluated using the discontinuous function has the same value as the same sum using the identical, continuous function. Riemann sums that sampled the removable discontinuity did not exist, so prevented the existence of the limit as the diameter of the partition went to zero. The identical function sidesteps this problem by supplying the limit of the function as it approaches the removable discontinuity, so the Riemann sum using the "filled in" function exists and you can integrate it. (Normally, one talks about an improper integral, splitting the interval of integration into pieces that avoid little intervals around the points of discontinuity, then taking limits as the little intervals shrink to zero. If the discontinuity is removable, one can show that these two methods of sneaking up on the removable discontinuities give the same result.)