This is nothing compared to what OBDIII will be. The government will be able to read and write to all parameters of the ECU, disabling cars at will and monitoring speed and location in real time.
Well as for the big brother folks. This technology would do nothing to assist big brother in their monitoring of your whereabouts. near as I can tell this system would not be actively transmitting information. You would have a street database which indicated maximum safe speed and then use GPS to determine where you were on said database. no need to transmit your coords off to some big brother organization.
I like speeding and I suspect that one fallacy of this article is that it would reduce congestion. That one boggles my mind. How does increasing each cars period on the road decrease congestion? My theory is that if I speed by 10% and 10 other cars speed 10% that is effectively 9 cars on the road. Total minutes of per vehicle traffic is reduced. Now many if not most people exceed speedlimit by more than 10% Bringing them all to "speedlimit" would increase congestion.
Highway they should raise the speed limit to 70 mph and allow 10% grace making maximum speed 77. That would reduce traffic and then you can kick in your passive GPS system.
Back to big brother concept. This would of course lend itself somewhat to Big Brother in one respect. It would be an input which could be stored or transmitted indicating the fact that you are a violator. But that battle would be the big brother transmitter battle not the car monitors itself and controls driver behavior battle. PS I do not like it because I think it increases congestion and reduces my ability to work the carbon out of the cylinders.