I think some people are making assumptions and getting way too upset about issues that have not been announced (and likely won't be for some time). Also, I read the article and the castle depicted is Cinderella castle, they may have realized their mistake and updated, but it is the right castle now.
No one has said that you HAVE to reserve your ride time in order to ride anything. It definitely will not replace standby lines, and I seriously doubt it will completely replace in-park FP. From everything I've read it seems like there will be a limited number of pre-visit ride reservations available online. I would assume that there will be a limit to the number of rides you can reserve in a day. It is still possible to walk into restaurants that take ADRs, you may have to wait a while, but it is possible, and I (again am assuming) don't think it's going to make rides nearly as long a wait as restaurants. Another assumption, you'll reserve an hour block of time just like the FP does now, not a specific to the minute ride time. Your reservations will be electronically stored on your RFID, and if you don't have that hour reserved or an in-park FP for that time, you won't be allowed in the FP line. I don't see them enforcing times (if you don't show up, I mean, just like with FPs now, there's no penalty if you don't use it), such as with restaurants, and I don't see them holding anyone else up if you don't arrive in the FP line at your allotted time.
As for the bracelets, I've seen them, they're not the funky paper-on-plastic backing bracelets that you see elsewhere. They are rubber, customizable and removable, so the kids can take them off at night to shower. I have a similar bracelet that is also a USB drive. I never wear it on my wrist, but hook it through my belt loop. It doesn't come off with normal (even vigorous, I used it when I was deployed in Afghanistan) activity, it requires me to actually pop it open. I would love to have a bracelet, especially one that I can customize as there would be less risk of me losing that than a card. I don't know how many times during my vacation that I reached in to get my KTTW card and freaked out because I couldn't find it, only to realize that I'd put it in a different pocket.