There will be an unintended consequence of this new technology that isn't a problem now, that will most likely become a problem in the future, that no one is currently addressing. So I will.
As it now stands, the characters don't know any of the kids by name, unless they're wearing a name tag or birthday button, etc. But when NextGEN begins and the characters start addressing the kids by name without any visible prompting... what happens to little Susie or Billy when they're not addressed by name, like the kids in front of them were, when it's their turn? All because their parents aren't participating in the technology so the characters have no idea who they are.
You don't think these kids are gonna be crushed when their favorite Princess or Hero calls the other kids by name, but not them? If that were me at that age, I would have been devastated. And how exactly do the parents explain why the characters didn't know their names, but knew the other kids by name? Seriously, this is a recipe for disaster.