I remember reading about these great new locks that you can install in your house and vehicle that are activated by a chip inserted somewhere in your finger or hand. I have a terrible problem with misplacing my keys, so this is the kind of technology that seems highly practical to me!
I imagine myself free from the frantic morning search for my keys, simply pointing my finger at my door as I leave the house, and in a very Harry Potter kind of way, hearing the lock engage.....
However! When it comes to a tracking device in kids, I think I agree that it might replace the far more important and practical skills of
a) sufficient vigilance on the part of the parent
b) the important coping skills of the child to be able to assess that he/she is lost and how to handle the situation - in this case, I am talking about toddlers who are verbal enough to understand about how to find an adult they can trust (in our household, we are currently teaching my three-year old to find someone in a uniform or another parent with kids and to be able to tell them his full name, our full names, and that he is lost and needs help). I think this is an important coping skill and I would much rather that my child develop the problem-solving abilities and self-suffiency of dealing with this situation appropriately than be passively and helplessly waiting for electronic rescue. I think the skills and mindset behind the non-electronic approach lay an important groundwork for dealing with emergencies and unexpected situations, in general.
We are losing some basic skills as technology does the work for us. Navigation and map-reading, for example - if your GPS unit stops working, do you know how to figure out where you are and where you need to go using a basic paper map?
Rapidly changing times call for evolving skills, but we should be careful that we aren't too quick to throw away the old skills and let a computer do the work for our brains.