The little RFID chips (like shown in the x-ray) are a different RFID technology than what iAutomate has. These are passive RFID transmitters similar to what you might use for access control in many comercial buildings which are usually in the shape of a credit card or keyfob. These only have a range of several inches unless you use a very large reader which can increase the range to several feet.
The iAutomate system uses an active RFID tag which has an internal battery and transmits a signal every .7 seconds and has a range up to 300ft from the reader. I've been using the system for almost 2yrs (worked with iAutomate on the original development of the products with HomeSeer).
Triangulation using this system isn't a reality although you can use individual readers and directional antennas in each room to track your location. These antennas can be embedded in walls or ceiling, but the cost of a reader & directional antenna for each room of the house will get expensive quickly!
We use RFID to basically tell the automation systems who's home, who's away and who just arrived or left. We don't carry tags on us while home, but I keep one in my wallet and Diane keeps one in her purse so they're always with us when we leave. We also have tags in all the vehicles and stuck on some other things too.
The beauty of the system is how "smart" it can make the automation systems and it really cuts down on having to interact with buttons, touchscreens, using VR, etc. When no ones home, the system automatically locks the doors, arms the security, adjusts the lights & HVAC, shuts off the TV, music, etc. All of this is done by simply walking out of the house.
When someone returns, the appropriate garage door will open depending on which car is arriving. It's open by the time we pull in the drive and the lights are on if it's dark so you never return to a dark home. A simple push opens the door and the alarm has already been disabled. Depending on who just walked in, we receive personal greetings and reminders over the whole-house audio and the house knows who's home so if I just arrived and Diane is gone, I walk in to my preferences for lighting, climate & music. If Diane is already home, her preferences remain and the greeting is much simpler only speaking reminders for me such as "make sure the trash is out". If Diane should happen to leave while I'm home, my preferences will take over automatically and then revert when she arrives again.
If someone returns after the house has been vacant, the greeting contains more information such as how many visitors (door bell rings) and phone calls were received while away and then prompts with any voice messages that were left which can be played back over the whole-house audio.
Back to the trash. You can detect if items are "here" or "there" quite reliably by checking signal strength. With tags on the trash and recycling containers, RFID knows if they are at the curb or beside the house on trash day. With this in place, I'll only receive my reminder to put it out if the system detects they're still by the house. I've also got a tag in the mailbox which tells us when the mail's delivered and tags on the bikes and kayaks provide theft alerts if they dissapear while we're not at home, and will open the garage door automatically when we ride up on the bikes.
Things like this also give the automation system more personality as the house will ask how your bike ride was, or if you saw any dolphins while kayaking, or if you enjoyed driving the sports car instead of the SUV that day. We've got a couple keyfob tags for guest which allow them easy access in/out of the house while visiting. This still ensuring that the alarm is active when no one is home and allows them access back in without knowing alarm codes, etc. This works well for house/pet sitters too, and alters some parameters while it knows we have guests present.
So anyway... iAutomate RFID can't easily tell you that you're in the Living Room instead of the Kitchen, but look at all the things it can do! It's easily my favorite part of the HA system and has really cut down on my reliance of the VR system and keypads, touchscreens, light switches, keys, garage door openers... you get the idea. So many things "just happen" now which to me is what the true meaning of "automation" really should be.
Whoa, this turned into a much longer post than I intended! I'm doing much more than mentioned here with RFID, but this will give you some ideas. There's a little bit of info on the Hardware page of my personal website if you want to take a look. It's linked below in the signature.