I really don't see how this is all that different/worse, or "treating like pets", than dogtags, which the military has been using for generations now.

The fact that the military considers it's people "material resources", and tracks and accounts them just like pieces of machinery, is old hat, and is already a part of military culture and dark humor.

RFID chips in troops have the same advantages over dogtags that "chipping" pet dogs/cats/birds/horses has over collar tags.