I was recently told to fly domestically in and out of O'Hare airport all passengers are required to have a passport.

No passport is necessary for domestic travel, even at O'Hare.

Erroneous. Any government issued ID such as drivers license is valid for domestic travel. We do not have international borders within the US.

Some 1 told you wrong. I fly from there often, and i don't have 1.

No.