If the whole world had Microsoft Tag ...

how the hell is this compelling?

I'd agree - I didn't see a heck of a lot of Microsoft Tag in the commercial there, just some fancy cgi animation that has nothing to do with MS Tag.

On the other hand, how exactly DOES one show Tag, and be interesting. I've seen Tag surface mostly among geocachers and ham radio operators around here, on things like nametags.

It'll be interesting to see how well this competes with services like ScanLife, which has a pretty solid foothold in media companies operating around Toronto from what I see.

Personally I find the idea quite interesting. If it would catch on it would surely make a part of advertising a little more exciting. Many products have quite a lot of media integrated in internet advertising and most of the time I am too lazy to punch out the URL on my phone... this technology, should it become pervasive enough will get more content to more people just through the cool factor it brings. In the beginning at least.