We've lived long enough for some sci-fi shows to start coming true! I've seen the episode too several years ago. I honestly had forgotten all about it until you mentioned it. Of course Schmidt is afraid of losing his control over people, he enjoys his power far too much!
Implanting chips into our brains has already been done, but it's a scary proposition. If 1 to 5% of people get an infection in their brain resulting in severe permanent damage and/or death. Although small, I don't like those odds!
Great post!