While I love the idea of connectedness and convenience, I believe the reputation system described here would be a disaster and seriously hope the world is not heading in this direction.
Technical challenges aside, here are a few major problems with having this type of reputation measure for everything:
* It's a huge invasion of privacy. There's a reason why credit ratings are difficult to access.
* It's uni-dimensional. Some things don't measure that way, it's why the word "trade-off" exists.
* It's a serious limitation for the sub-optimal people/businesses out there. How will the socially-awkward people find dates? How would new businesses be able to make the necessary mistakes they need to in order to find a market fit without seriously damaging their information?
* It's a major hurdle for those who do not yet have any reputation: those who are from outside the system such as new businesses, or don't know the system such as new immigrants and non-early adopters.
I think you make good points here, but I don't think it'll stop this from happening. There are ways to try to capture the intangibles, and the functionality is just too rich for us to avoid.
It's not the IoT that I'm arguing against, it's the reputation system. I think that it's fairly dystopian and unfair, and even if it comes into play as you've predicted eventually a significant percentage of people will just abandon or ignore it just like they do with many other reputation systems.
Technical challenges aside, here are a few major problems with having this type of reputation measure for everything:
* It's a huge invasion of privacy. There's a reason why credit ratings are difficult to access.
* It's uni-dimensional. Some things don't measure that way, it's why the word "trade-off" exists.
* It's a serious limitation for the sub-optimal people/businesses out there. How will the socially-awkward people find dates? How would new businesses be able to make the necessary mistakes they need to in order to find a market fit without seriously damaging their information?
* How do you avoid people gaming the system to become more "reputable"? See https://www.google.com/search?q=why+I+left+stack+overflow
* It's a major hurdle for those who do not yet have any reputation: those who are from outside the system such as new businesses, or don't know the system such as new immigrants and non-early adopters.