Actually, these guys did get funding… nearly half a million dollars for an SBIR II grant to prototype a means to monitor toppling elderly:
SBIR Phase II: Automated Monitoring and Alarming for Elder Care
In this case, the technology is machine vision, and not RFID; I’d see these two as competitive, and would posit that the former might be a far better solution to retail store monitoring: rather than have to have all your product carry tags, which may or may not be easily read, in the messy store environment, one can use cheap computers to keep an eye on things, optically. To the extent that RFID is trying to play in “surveillance space,” it’ll be going up against other advancing technologies (we’ve heard that pervasive, item-level tagging might be 7-8 years out… imagine what machine vision ought to be able to do, 7-8 years out), and if item-level tagging is seen primarily justified by security/loss-prevention, the ROI might never appear.