The limited range of 2 to 3 inches makes it perfect to use to replace a card swipe/numeric keypad security control. You'd never forget the bloody thing.
As for the tumors I would suspect some peoples body would reject a foreign object now matter what coating you put on it.
The limited range on the device seems to be overlooked by the kooks that think Big Brother can track you anywhere with one of those. If one of those grain of rice sized devices had a power cell strong enough to provide power for a l-o-n-g distance transmission, you'd know about it real quick. The RF would burn the tissue adjacent to the antenna. You wouldn't miss that. An RF burn is quite painful.
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