According to MSNBC the form is only used if you don't have a birth certificate or if your birth was not registered within one year.
Also, you don't need all the information just something to prove where you were born. So, if you had a bris that would be evidence.
This seems more reasoanble, after all how do you prove you are a citizen if you don't have that.
All that said, it doesn't appear it would affect immigrants at all, since they would have proof of citizenship in the form of their certificate.