I just had my passport renewed.
I didn't experience any difficulties, but I'm glad I got it anyway. I have no plans to leave the country, but its still a good thing to have, either to get out in a hurry if I want to, or to prove I have a right to stay here. I also have a birth certificate, (Tampa, 1947), my DD-214, and an honorable discharge.
Not that it really matters, its not your birthplace that really matters, its your "nationality", whatever the fuck THAT means.