Yes. All new US passports require a scheduled, in-person appointment. Both paperwork and photo need to be printed and submitted in person along with originals or certified copies of identification and proof-of-citizenship. You have to swear all information to be correct and sign in the presence of a government worker.
Renewals, however, can be done by mail. But the photo still needs to be physically submitted with the paperwork.
In years past the physical photo was laminated into the passport, and they needed two copies. These days only one is required and is scanned and printed into the passport page directly. So it's a step forward, but it's still a paperwork process and that's probably not changing for now.
The service is exceedingly stupid. You have to submit two physical photographs, one of which is then scanned in. And the requirements are pretty strict, has to be the exact size and your head has to be in a narrow band of scale and position. Typically costs $US15 (GBP12) to get them done on the spot at a private photo provider, for something that should be completely free.
