It is true, as I understand it any site the user visits could store a unique identifier that other sites can retrieve for correlating activity of the user across sites.
I suspect some will see that as a feature.
I think that the problem will be the user is forced to manually create a black list of sites that they don't want using this cross domain service, or disable
Xauth.org completely.
I can also see that there is nothing to stop add networks and others from using the same browser feature to track users without
Xauth.org.
If that becomes a problem I can see people looking for ways to block this new form of cross domain cookie entirely in there browsers.
I give the people who are working on this full credit. This is a clever way to create a pseudo smart client via JS in the browser rather than requiring a plugin.
I do think that searching for tokens by protocol is an important feature. Without that it will disadvantage the small players.
XAuth will need appropriate oversight of the extenders, so that people are comfortable not blocking it.
I can see this used with some sort of XRD publishing service, however I would not want to see a correlatable identifier being disclosed to all RP by default.
This can be a useful tool but it also has perils.
It may be that
XAuth.org can over time develop more of the user control features of a smart client, and be seen as privacy protecting.
It is still too early to tell how it will play out.
John B.