I got across the border with Canada twice this past weekend. They asked for my 'papers' both directions. I gave just my passport, and it worked. It's current. I wasn't worried about being searched, and wasn't. Of course, I wasn't worried about it two years ago, and was. On that occasion, I had just renewed my CWP the previous Monday. The Canadian border guard was very specific about weapons, mace, pepper spray...I had the same stuff this time...two lockback knives and a nasty looking bottle opener...
Applying for the passport wasn't all that big a deal. I downloaded/printed the forms off the State Dept. website. Then, I got mug shots at the local drug store. And looked online for places where I could turn them in, pay, etc.
The critical part of the last process was finding one that was open at the right time of day. Some were open 5 days a week, but only until 2pm or open until 3pm, but too far from where I work. I found one that worked for me, went and did it. The passport came in the mail a month later. I'm glad I did it, and it really wasn't a huge hassle.
Steve