> find a dead child born a similar year as you. You then got their birth certificate.

You're missing the crucial step of: how on earth would you get the birth certificate of some unrelated 30-years-dead kid?

You can apply for a birth certificate even without ID yourself.

A number of states now require at least some kind of substantiation of your identity to get a copy of the birth certificate, although what exactly you can use varies, and sometimes you can apply by mail with photocopies.

Here are Indiana's requirements: http://www.in.gov/isdh/files/Id_requirements.pdf

With this you can get a library card, now you have two forms of ID, which you can use to get a state ID.

The last 2 (U.S.) state Ids I have applied for have required 4 types of information(in the last year or so, in different states). 2 documents showing an address (proof of residence in the state), a social security card, proof of status in the U.S. (a valid passport or various birth certificate like documents), and proof of identification (these documents carry varying weight, an ID from another state is a good one...).

I needed a birth certificate, the options for getting that were to send a photocopy of my driver's license (certificate mailed to that address) or have a parent apply for one.