"Wouldn't that make it exactly the same circumstance of some military ID we are not able to accept because it does not have all the required information?"
Yes, like you said, if we were allowed to use common sense, that would be the case. But passports are listed separately under (A)(1) of Civil Code 1185. Military IDs are listed under (A)(2), the section that includes the requirement for a physical description. Who knows... maybe some day we'll all be carrying our own scanners or chip readers to ID people. 
One thing that's always bugged me is that foreign passports are also listed under (A)(2) which, since I've never seen one that has a physical description (let alone one that I could read), technically means that we can't accept anything but US passports. Maybe that's what the drafters of that law intended, but I've always found that difficult to believe.
I know this issue has been discussed here before many times. Some of us have even been told by the SOS office staff that we CAN accept foreign passports, but I still think that's an area of our state code that either needs to be fixed or the intent clarified. (Maybe I should try again now that we have another new SOS. )
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