What’s Up with the Smart Card E-Passport?

I've heard the talk. Next year we'll be using new e-Passports, which include an integrated computer chip capable of storing biographic info, a digital photo, and other biometric info. Bye, bye familiar, friendly little passports. I guess the hard copy pages of stamps and visas (and the bragging rights associated with accumulating them) are becoming obsolete. Though we'll be able to use our current passports until they expire, I hope. But I'm a little scared about these Smart Cards. This opens a whole new can of worms about privacy concerns, and the security of the stored information. Know anything more? Fill me in!