Not true. A few years ago I called off to the county clerk's office where I was born in Illinois and got them to send me a new copy of my birth certificate, which looked pretty much like the Obama document. I had no trouble at all using it to get a passport.
*A certified birth certificate has a registrar’s raised, embossed, impressed or multicolored seal, registrar’s signature, and the date the certificate was filed with the registrar’s office, which must be within 1 year of your birth. Please note, some short (abstract) versions of birth certificates may not be acceptable for passport purposes.”
From: http://travel.state.gov/passport/get/first/first_830.html
The point is - no one accepts an imaged copy like the one posted by Obama for serious identification purposes.