While true, there are ways it could have been handled to keep the problem from escalating. Yes, it might be a rule, yes it might even be a law. It might have been better to say "Sir, I am not sure you are aware but..." and then escalation resolved.

But doesn't this also apply to every current house chip (and potentially LE) I have at home? I remember reading a placard to that effect next to the cage where I got my new Silver Sevens $1 chip. Should I bother flying home or will I be met at the airport by the Nevada State Police? (although I am not saying when I am coming home, I presume they already have this since the NSA has been tracking me making travel reservations and the airlines reported this to the TSA).