Nope, I don't think it's going too far. In fact, it's really nothing new. There have been ways to track the vehicle for years it just isn't factory equipped. I saw a LONG time ago on Hulk Hogan's reality show where his daughter was going out on a date and he had a locator installed on the car where he could track her via the net.
The issue here is trust, do you trust your kid to tell you exactly where he or she is going and what they're doing when they get there? Any parent who trusts their kid implicitely is nuts lol. Rarely is a teen 100% truthful.
The only issue I see is that when the vehicle stops somewhere, where it's not supposed to, how can the parent tell what's there to determine whether it is a legimate stop or not? they'd have to look up google earth or whatever to see what's around.
I mean, it would be pretty obvious if a female teen drives to her boyfriend's house then goes off to the woods to watch submarine races......
I'm actually surprised they don't have a locator app for smartphones. Something where you can load it onto your kid's phone and then at any given time, find out where they are. If they're somewhere they're not supposed to be, the parents can call and say "hey junior, what the hell you doing there? get your ass home NOW".