I could imagine the tag being useful for training and maneuvers. I could also imagine it being useful as a last resort for a soldier to be located when lost or wounded in theater and to be fair, in the referenced presentation it mentions (once) that the tag is 'inert', which may mean that it needs to be activated before it sends a beacon. That might be an acceptable application.
What worries me is that UAVs are now so cheap and accessible that I could easily imagine even small states being able to afford a small fleet of UAVs that swarm over enemy troops in theater and home in on these tags. Or other forms of identifiable RF radiation, such as from a FCW Land Terminals.
I hope they know what they are doing, but I have my doubts.
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Check out the RFID readers that were on display at HOPE. I had walked by them several times before I realized what that beeping was...
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