I have a question that might reinject some debate.
Has Touch ID really been hacked?
It's my understanding that the accepted hack was done by scanning a high resolution fingerprint of the enrolled individual, not by actually "lifting" a print.
I understand that the concept is the same as faking other finger print readers, but how often will a real data thief have access to a high resolution image the print they're trying to fake?
There was a second video. I didn't watch all the way through and didn't read a summary of their updated method, but it implied they managed to do with a print directly (not a scanned finger) because they put the phone on the scanner directly. Even if they didn't, it definitely will be possible to do it this way. It's only logical someone will bypass it this way eventually. (However, assuming they did do it this way, I also assume they made it easy for themselves by ensuring a nice clean and complete print was there to use, which is usually not the case for thumb prints.)
However, the assessment from the security guy is that it's very hard to do. Not only do you have to really understand the technology and the methodology, even then you may or may not be successful, and thereby risk the phone going in to passcode-only mode.
It's definitely something a casual thief would not pick up quickly just by reading a description of it at Gizmodo. It would take some serious trial and error, with the right equipment and supplies, although I'm sure some larger stolen phone rings would probably get enough of these to be able to have one of their guys learn how to do it more consistently.
Overall though, this is the point. It's a non-trivial task. It most definitely can be done, but it requires real work and real knowledge/experience to make it work. That is enough for me, given the convenience of TouchID.
In that context it provides a level of security much better than not using a passcode, but it is way more convenient than using a passcode. Apple has beautifully struck a balance here in their implementation, if Anand's and everyone else's reviews (as well as my assessment through the demo app) are to be believed.