The proposed form, which is completely ridiculous, is intended for those who cannot supply a birth certificate when applying for their first passport.
That seems understandable considering that a passport trumps all other documentation as proof of citizenship in a country. If people cannot provide adequate documentation, then perhaps they are trying to fake citizenship as a loophole. I mean, it is not like people can come and go in this country as they wish, oh wait, there's the Rio Grande, nevermind, yes they can.
Illegal immigration happens all over the US via a variety of pathways including some ways that start out legal. . . Recognizing the full scope of the problem is the best way to actually try to fix it.