Except Apple never said, never hinted this is something they were working on. And people who have contacts inside Apple like Gruber and Rene Ritchie never said Apple was working on this. So basically people are suggesting Apple is fudging, spinning or worse, lying because of unverified rumors from people or media outlets that as far as we know aren’t on the inside with Apple.
Exactly this! I feel like Apple is usually ready to admit that they tried something and that it didn't work. This suggests that what they ended up with is superior. When people complained that the new macbooks weren't touch screen, Steve Jobs said they tried it and it didn't work. Your arm gets tired. Regardless of whether you agree with that or not, it wouldn't benefit Apple in the least to deny trying something that they ultimately decided was inferior.
Secondly, nobody seems to realize all the tech hardware that makes up Touch ID. Just look at the image on this article. The Touch ID sensor is made up of many layers of components. It has to have a metal ring around the lens to detect the presence of your finger. Developing something that would exist under the screen and have absolutely NO obstruction of pixels would mean they would need to redesign Touch ID from scratch to work in a totally new way. It doesn't make sense that they would do this, especially if they already thought Face ID would be superior.