You should take a trip to HKG. Over here we have a similar system called the Octopus card which is like to Oystercard but you can also pay for small items like newspapers, drinks and other small goods. It can be used for virtually any form of transport in HKG apart from a taxi. Not sure if this is true, but I think they are thinking of incorporating the Octopus card system into the HK ID cards which will make life a hell of a lot easier and another card to come out of my already bulging wallet!
BTW, when I used my own printed boarding pass for my NCL to LHR sector, I found security a major concern. Not once, at the check-in desks when checking my bags, at security or prior to boarding, did any member of staff ask for my ID. I even got my wallet out, ready, when boarding just to make it quicker. This has got me a bit concerned for the new system, although a good idea. I like the idea of putting your boarding card on your EC card. It makes it easier for me as I have too many things to remeber to take when travelling. Also, that means that I can check in when away from a printer, eg. on my laptop at a wireless hotspot.
I think these cost cutting ideas actually prove even more costly considering the administration required. The amount of hassle for BA when things go pear shaped is quite large and the amount of time it takes for the security checks at the gate or at check-in is quite substantial if everyone was to have a printed B/P.