Among lots of other reasons, it seems some of the major issues regarding creation and deployment of the ID include lack of privacy due to a centralized database, high cost of implementation on a wide scale, and potential increase of identity fraud (due to increased reliance of a potentially forgeable document).
The Real ID legislature was passed as a rider on a terrorism and tsunami relief bill.
I haven’t been able to find anything on a RFID chip or any other kind of tracking device, but apparently things like your Social Security card, Passport, Birth Certificate and other major documents will be scanned and stored inside a database, accessible by state and federal agencies.
Apparently it’s not a true ‘national’ ID, as the individual states will be required to distribute them, however the databases will be linked (which I thought was true already). It seems that states are putting up a fight on behalf of it’s citizens and claiming that the Real ID is a threat to our freedom, rather than a boost in security. I would agree to that.