Is it true that people on both sides now have to have a passport to get across the boarder even to get back home?

Absolutely not. I go every month, and I don't even stop at the Customs of the country I'm exiting, only the country I'm entering. So again, when going to the US you stop at US customs and when coming back into Canada you stop at the Canadian customs.

Hi there :) Yes, it's the American Border Guards first if you're coming in from Canada and then the Canadian Border Guards when you're coming back home. Meaning that each country will want to see your passport and paperwork