As long as the data is intact (whether it's private key or signed transaction), theoretically you could regain access to your coin.
I was thinking more of scenario where the chip thinks you are dead when you are not, and then broadcasts a transaction which moves all your coins to someone else's address.
Who decides? Instead of inflation and governments forcing the loss of your savings, you would have a loose group of individuals decide that fate?
I don't necessarily disagree with your other points, but this really is the only one which matters. If you set up a centralized mechanism whereby a small group of people choose how and when to redistribute coins belonging to other people, then bitcoin is no longer decentralized. We've seen it happen to other coins, where a small group of people decided that some transactions were not allowed or that some people were not allowed to own some coins. If you go down that route with bitcoin, then it becomes just another scammy altcoin.