A suspended license is a valid id, so long as it is not expired. It is not valid to drive, however, and possession of a suspended license is by itself a crime.
Most people in my experience are shocked to hear that. I have had to defend people on charges of having a license that is suspended on them!
The law says the license is the property of the State, and if it is suspended or expired, it has to be returned to the State or be destroyed. This, however, does not mean that it is not a valid form of identification, but it must NOT be expired to count.