I've seen some of the fake documents, and I can't tell them appart.
Some of the forgers have stolen the real machines that the state uses to issue IDs, by breaking into drivers' license offices and hauling away the machines. Even more daring, they have gone back on a regular basis to steal supplies, such as the sophisticated plastic paper used to issue the cards.
In other words, a fake ID card and a real ID card can be printed by the same type of machine and in the same type of laminate paper.
The US works on an honor system. Most of us would not even think about lying to a police officer, much less buying fake IDs.
Once the honor system breaks down, all these technological gadgets become useless.
I know how common and good the forgeries are, I have seen some myself. The other issue is people who work at DMVs also get involved. We just had a case here where a man murdered a Deputy Sheriff and fled to Mexico. The murderer's aunt works at the DMV and they are now saying she fixed him up with vehicle registration and driver's license in a fake name. This is not even the first time a DMV official in this state has been in trouble using their job to make fake drivers licenses, titles, etc.
I think one answer is to prosecute to the fullest anyone found using fake documents or committing identity theft. It seems illegals are usually not prosecuted for this at all, even when caught. Right now they are only going after those who create the documents, not the users.