That can't be true. It is possible for private individuals to create documents that adhere to those specifications. In fact, some do but of course the documents are not accepted.
http://www.worldbulletin.net/todays-news/183967/morocco-rejo...
In the larger context of the article though, it probably doesn't change much of the political reality.
I live in South Africa, and with the ruling party and president seeing their eyes on potentially making the former AU chair our next potential president; I've been quite critical of her capabilities.
I have largely thought of the AU passport as Nkosazana Dlamini-Zuma's vanity project. There's lots of structural issues which you mention, that make the practicality of the passport difficult, and than none have been dealt with says a lot.
My opinion is that ECOWAS have done better in managing their region than the AU has in intervening. The recent Gambian situation being a good example. I can't talk much about SADC as we have Swaziland and Zimbabwe that are violating human rights with SA and other members not intervening much.
Your solution of adopting ECOWAS and/or other frameworks is more feasible.
But the current scheme is of course a sham, a mere propaganda piece. And maybe yet another scheme to get paid bribes a 2nd time. Nevertheless, you have to start somewhere to build pressure.