Mexican Driver's License in Texas

Here is part of an e-mail that has left me puzzled. Comments?

"Just thought I'd let you know that the "DMV" office here in Patzcuaro told me today that I wouldn't be able to use my Mexican license in the U.S. but that I could keep my Texas license. Later today over the phone the Texas DMV confirmed that I would not be allowed to use my Mexican license there. Rather icily they said "Texas doesn't have a reciprocity agreement with Mexico." Very neighborly, no? Especially considering that it's perfectly OK to drive here with a Texas license."

So does this make all Mexicans legally entering and driving into Texas criminals or infractors??

That's pretty bizarre, considering I got my Mexican license partly because I presented a valid Arkansas license -- which IS recognized by Texas.

Fortunately, I also have a German driver's license -- good for life!

Reckon them Texans recognize that one as valid??

So is Texas the only state that doesn't recognize Mexican Drivers license? Does Hertz, Avis, etc., not offer car rental to Mexican visitors, with current drivers license? My NOB license has expired, and had planned on renting car, NOB.