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For more on marking an answer as the "Best Answer", please visit our FAQ.Because it just isn't true. Millions of Europeans, in the Schengen area, can travel across borders on their ID cards. Canadians & Americans can also cross each other's borders without passports (and Americans don't need passports for short visits to Mexico). And strictly speaking UK citizens do not need passports to enter the Republic of Ireland (and vice versa) though the airlines insist on photo ID. So it isn't always a daft question.
Sylday is right. I am British and live in Belgium. When I travel by car or train to The Netherlands, Germany, Luxembourg or France, I don't take my passport with me (I have a Belgian Carte de S�jour) because these countries, like Belgium, are Shengen signatories.
If I fly, I always have my passport because the airlines insist on it for identity (security) purposes because British citizens do not (yet) have a National Identity Card.
What is irritating with these passport questions is that the poster often gives no nationality or point of origin for the trip.