You know, I'd be wary of any TA who advised against a passport even before the news of the last few days.
Seems to me that if a TA had any marketing sense, they'd advise their clients to get them, because for some people, getting a passport also brings the itch to travel more. By telling somebody that they'll "probably never need a passport," even under the old scenario, the TA is completely discounting the possibility of them taking cruises in Europe, Australia, or pretty much anyplace outside the Caribbean/Bahamas/Bermuda/Canada/ beaten paths. Not to mention international travel that doesn't involve cruises (yes, some people actually do that from time to time).
So, notwithstanding the absolutely incorrect advice given to Phillygirl, it smacks of a TA who doesn't have much imagination or marketing savvy.