Yes Axel, it is an interesting and quickly developing area of field biology. First I'll say that I don't think banding/ringing is going to end any time soon. It is still the cheapest, low-tech way of finding out about the movements of free-living birds. However, it has its limitations because all you end up knowing is the location where the bird was recovered dead but you have no idea what happened in between unless the bird is marked with a unique combination of colour rings or engraved neck band etc.
The advantage of location devices attached to birds is that you know where the bird is over the time is is carrying the device. There are three main types- satellite tags (PTTs) which beam the bird's location to a satellite, GPS tags which store GPS location in memory, and geo-loggers which store the time the sun rises and sets and therefore can give you latitude and longitude. They all have their advantages and disadvantages- GPS devices give the most accurate location, followed by PTT and a distant third, geo-loggers. Another big difference between devices is that PTTs do not have to be recovered from the birds (they are designed to drop off after a period of time), whereas GPS and geo-loggers have to be recovered to download the data from memory. However, even this latter problem will be solved with built-in Bluetooth technology. Finally, the devices differ in size- the smallest GPS (about 8 grams) and PTT (about 11 grams) devices are bigger than the smallest geo-loggers (about 1 gram) and they are all getting smaller all the time. There is a widely accepted limit to the weight of a device you can attach to a bird, which is 5% or less of the body mass. Smaller and smaller devices allow their use on smaller and smaller birds with few if any ill effects. So right now a 1 gram device (1.5 grams including leg band) could be used on a 30 gram bird which would include birds the size of a thrush or sparrow, which is pretty amazing! Here's an article about using geo-loggers on small birds and hints at the important conservation implications of these studies:
http://planetearth.nerc.ac.uk/news/story.aspx?id=327