Not quite. The fee for the ID itself might be free, but to get that ID you often to have to present an application and supporting documents in person at a place that can issue the ID.
The supporting documents, such as getting a copy of your birth certificate, often cost money. It often requires significant travel to get to an office that can issue the ID. When the office is in a different city or county, there is often poor public transportation to it making it even harder on those who do not have cars. The offices that can issue ID often are only open on weekdays and only during business hours, meaning many people have to take unpaid time off from work to go.
One can easily blow a whole day on this, or more if there is a long wait at the ID office, assuming that they even can get time off work for it.
A "free" ID ends up costing many people somewhere in the $75-175 range due to document fees, transportation costs, and waiting time.