It's pretty common around the world.
EU citizens don't need a passport to travel across the EU (even outside the Schengen area, where you have to go through a border check), they just need an identity card.
(most) EU citizens could also travel to Turkey with their identity card.
EU citizens could travel to the UK with their identity card, for a few years after Brexit, as long as they got UK (pre-)settled status.
Russian citizens can travel to Armenia, Belarus, Kazakhstan, and Kyrgyzstan without their international passport. They instead have an "internal" passport (meant to be used like an identity card, and for travel to closed towns inside the country), which is recognised by those other countries.
The same applies in the other direction for citizens of nearby countries travelling to Russia (even in the case of an Abkhazian internal passport. Abkhazia is recognised by only ~6 other UN member states).
I'm not sure in which way a US "passport card" differs from a plastic identity card. But it's notable that a few countries don't have either (UK doesn't... Russia and a few neighbouring countries, as mentioned before, instead have an "internal passport")
Of course, something in common with all the examples above, and with US citizens travelling to Mexico, is that you're travelling to neighbouring countries with friendly relations.