Even when the passport chips are unreadable, the passport still is considered by the USG to remain valid.
4-color laser engraving technology exists for passports and other polycarbonate photo ID docs to have color photos visible with the unaided eye, but how much more money do I want to pay for more "security"? Zero. Even the December 2021 increase in US passport fees is unwelcome by me. And the next generation US passport costs are already increasing in such a way that it's a matter of when and for how much more the next "user fee" increase hits because of this transition in passport book style.