I agree that keeping a passport in a bag of any sort is not a good idea. I usually carry my passport in the secret pocket in Tilley Endurable pants when in transit. The concealed pocket in these pants are big enough for a passport and small front pocket wallet. I have also carried it in a money belt and neck wallets from time to time as well. When staying at a hotel or cruise ship I keep it in the safe.
I also signed up with the State Department STEP Program.
http://travel.state.gov/content/pass...h/go/step.html
Shak