After a consultation, which resulted in the email addresses of individuals being published on a US Government website, (good going - it just breeds confidence about data security!) the decision has been taken not to include RFID chips in US passports. In the UK it is proposed that ID cards contain RFID chips (whoops, sorry, 'smartcard chips with a radio frequency contactless interface'). This would be a very bad thing in what already is a very bad idea - as it would allow data to be read, and potentially stolen, without the knowledge of the card carrier.
It'll be interesting to see if they push ahead with the RFID thing now the US has backed away - they can't claim that it's based on international agreement, as they have done with the biometric side of things.
The real issue is the all pervasive nature of the proposed database.