The iPod/Nike kit is a really interesting use of some fairly new technology made really easy for most any person to just pick up and start using. Based on experimenting by devs/hackers, they've figured out how to pick up the RFID connection through their own devices, something that was very apparently possible from the moment the kit was announced.
There are all kinds of really neat things you can do with such a simple tracking device for pedometry (relative distance when GPS/cell geolocation falls out), location (you are at any number of places a sensor station is setup), tracking devices in races (they use expensive/proprietary tracking devices now), and so on.
But leave it to the media to do a hype piece and scare tactic on the cool technology. Here is a CNN video on the "bad things" you can do with it.
While the information and knowledge is good, they could have done better in talking about how useful it is, the potentially good and interesting things you can do with it, but also be aware of...