This. Passports are available in card form as well as book form too so you can carry a passport card in your wallet with your state ID. I have no plans to get a "Real ID" driver's license since I already have a passport card.
Not every American resident is an American citizen. If you’re not an American citizen, you certainly cannot get an American passport in a fancy card format
If you _want_ a Federal ID that is accepted by all states, you can certainly get a passport. It's what I often use for ID.