Whilst that this is an airline specific trial, I think it good news that someone in the UK is trying this out, hence posting here.
BBC News - BA testing luggage tags made of electronic paper
The tests are with staff luggage. Here is a quote "a British Airways representative told the BBC"
"The old security questions such as, 'Did you pack your bag yourself?' are no longer a legal requirement, but the idea of queuing to check in your bag has never gone away," he said."The e-tag still involves going to a desk, but you literally just drop your bag off and someone has a scanner."
We can but hope as the problem is resolved as simply as that - because at bag drop off - the pax starts asking 1,000 questions causing delays. They are still going to want to ask those questions.