I think Mal hit the nail on the head with her comment.
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...it's a parent's responsibility to know where their little one is - they shouldnt be relying on technology to do that for them.
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People are lazy and this will give people the comfort to be even lazier about raisign their kids.
I will concede that Cyrnel is right. Sometime it is easy to lose a kid in a crowd. That's just part of being a parent. I can see that it would be a good tool if it were a temporary thing (rather than a permanent implant) to use on a toddler when visiting somewhere like Disneyland. Kids get lost all the time.
But for daily life people really need to rely less on tech and more on spending time with their kids.