With this kind of system we end up with countless incidents such as that of the US-born Hispanic truck driver who was recently held by immigration officials until he came up with a birth certificate.

Of course, conservatives have with good reason traditionally resisted this idea. Many people feel that allowing the government to track their movement with such a system would be unconstitutional --or at least dangerously close to being so. But there could be checks and balances built into the system. There are other countries which have tackled this issue.
The wallet-size US Passport Card is a step that direction but it is over-priced (IMHO) and voluntary. (Note that it is only good at the land border crossings or sea ports-of-entry. For some reason it doesn't work for cross-border air travel.)
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