I just saw this on Real Tech News. It is a joke proposal by some civil servant at the Department for Trade and Industry about the proposed ID scheme. Apparently it could cost £500 for an ID card, including integration costs, so this guy has suggested giving everyyone an iPod Nano! At £139 they're much cheaper, and it would reduce mugging, since there would be no point in stealing them, as everyone would already have one.
I think this is the solution the government has been looking for. If they adopted it, I think all those civil liberties concerns would go out the window pretty fast!!