I am a little bit confused by density matrix notation in quantum algorithms. While I am pretty confident with working with pure states, I never had the need to work with algorithm using density matrices. I am aware we can have/create a quantum register proportional to a density matrix by tracing out some qubits on a bigger states, but I don't have any intuition to how this can be done in practice on a quantum computer.
It is simple with just an Hadamard gate (for n being a power of 2) to prepare the following state:
$$ |\psi\rangle = \frac{1}{\sqrt{n}} \sum_i^n |i\rangle $$ The density matrix version of this state is: $$\sigma= \sum_{i,y}^{n,n} |i\rangle\langle y|$$
But instead, I would like to know how to prepare a quantum register in the following state: $$\rho = \frac{1}{n}\sum_{i}^{n} |i\rangle\langle i|$$
Unfortunately, I have no intuition how I can think this state in a quantum register, as I am too used to work with pure state. The density matrix should incorporate our (classical) ignorance about a quantum system, but why should I ignore the outcome of discarding (i.e. measuring) a bigger state that gives me the totally mixed state on a quantum computer?
Rephrased in other words my question is: what is the pure state state of $\rho$? We know it must exist, because density matrices of pure states have the property that $\rho^2 = \rho$ page 20 of preskill's lecture notes. Intuitively, is $\psi$, but it is not, as $\sigma \neq \rho$.