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This is quite correct. The SSN was originally developed for the sole purpose of distributing social security benefits. The Privacy Act of 1974 (a misnomer if I've ever seen one) was designed to govern the use of the SSN by other government agencies as well. Today, it's used by any number of entities as a means of identification, including credit bureaus, insurance companies, hospitals and doctors' offices, schools, etc. If people are skeptical about just what can happen, check out this site, which exists for the sole purpose of providing information about people. Since there doesn't seem to be any laws protecting citizens against the use of their personal information as a commodity, tracking a user's processor ID will add but one more means of invasion.

There's also an interesting article in this month's issue of Scientific American that compares the laws passed by European nations (the European privacy directive), with what (little) is in place to protect Americans. Ironically, some very big names (America Online, Bank of America, Bell Atlantic, IBM, EDS, Equifax, and Direct Marketing Association) all oppose specific legislation to protect the use of personal information (and why not - they've got a lot to lose). The whole notion of an embedded processor ID just raises the stakes a little higher.