I'm not sure he meant it in the same way you may have responded. I much prefer a less invasive method that either the RFID or the GP's post. Anything that requires participation from the parents is a good thing. (I'm making the generalization that increased parental participation in a child's education directly equates to the success/performance of the child.)
If you enforce point 1, "Tracking performance negates the need to track attendance." I think you've found the key right there, but that means administration and parents will have to demonstrate dedication and effort into the system. If you can "ace" all of your tests and not show up, good for you. The option for advanced/college credit courses might be a good thing to be offered.
On the other hand, if a student is performing poorly, force additional parental involvement, require more time be spent at school by the child for additional tutoring. If you make the community get involved, you'll likely get the best result. But it's not the easy way, so it's more quickly rejected.