The piece quotes a Metro person as saying that a recent European Union effort to force the tags to be deactivated at POS as the kiss of death for consumer-facing RFID. "If we have to deactivate at the check-out, then the technology is going to stay within the logistics process - to say where is a box or where is the pallet in the distribution center. It won't come on consumer items. They're going to kill the technology with that."
Metro's RFID Trial Versus EU's Privacy Rules
The Metro Group's RFID trial efforts have been well-known, but this is an interesting International Herald-Tribune story discussing some of the privacy debates within Europe on their efforts.