If that happens, everyone is screwed anyways, what difference does it make if your passport has a machine readable chip?! All governments in developed countries know all of their citizens. Making that knowledge and verification more easily usable in specific scenarios ( like verifying your identity online for government services or at airports) doesn't change anything with regards to what the government knows or has. In both the scenarios, even with paper forms/manual checks, they still know who you are (when were you born, how much taxes you pay, parents, address, etc.) and what you did in that precise moment ( passed through airport or filled taxes online).
IMHO refusing technological progress that makes lives easier for almost everyone on unfounded fears is wrong. Discussions should be had about how to do that progress in the best/most secure way possible, but refusing it outright? It's just being a luddite for the sake of it.