I think we have to put "security" here into context. From what I saw and understood from the keynote, Apple seems to be positioning this as a convenient way to unlock your phone and of course if they just left it at that everyone would be up in alms going "What all that just to unlock my phone?!" and so they threw in "You can make iTunes purchases as well" which I guess they're testing the waters to see how effective this is as an authentication method.
So the way I see it, there are two main sets of concerns here.
1) Those concerned that their data is easily stolen, and
2) Those concerned that their phones will be stolen and resold
And maybe a combination of the two. I've seen some use-cases mentioned which are very plausible (i.e. celebrity phones etc) but then again how many of us are celebrities?
So for (1) if you are security minded/conscious, you are probably already using a "strong" passphrase and you can continue using this strong passphrase without enabling TouchID. Though personally, TouchID will enable me to have a strong passphrase and use the TouchID for convenience since (2) even if someone unlocks your phone, they cannot turn passphrase/activation lock/find my iPhone off without knowing your Apple ID password and/or existing passphrase. It will be a bummer that for a brief period (assuming they manage to break in before I can remotely wipe the phone) all my personal info will be accessible. That said however, if the person who stole your phone is chiefly interested in the data contained within said phone, then he/she probably can get around any security measures anyway by just plugging the phone in and running some software.
One interesting scenario that hasn't been discussed is law enforcement. I've read (I'm not from the US so forgive my ignorance of US laws) that they cannot force you to unlock your phone but with TouchID, don't they already have your prints and can't they just make a replica of it and unlock your phone? Would that be legal?