OK. Just read this entire thread. And I think there are some takeaways (to summarize) so far:
1. CCC would not fake this. Period. It's genuine.
2. You don't need an image of a finger, only a fingerprint.
3. It's a 5S. (also see 1)
4. You can see that the finger that gets registered is the first and (so far) only finger registered, because it starts with no listed prints. (also see 1)
5. He uses a different finger when opening the phone with the facsimile print. (see 1, again).
6. This may not bother you or me (it doesn't)--it may be no big deal to you or me--but it is indeed a (somewhat) big deal, because Apple claimed that the sensor could not be fooled by copies of fingerprints left on objects like drinking glasses or your phone because it was reading subdermal characteristics of your finger!.
So at this point, we really need to see this replicated and tested and explored and we really need to hear a response from Apple.
Now, personally, I tried to live with a passcode lock for a while and it was just way too much of a PITA so I turned it off. I have no protection whatsoever on my iP4. The fingerprint sensor thing--even if just a mild form of protection against unauthorized access--really appeals to me.
Finally, as for fingerprints replacing passwords, I think that's a BAD BAD idea, for obvious reasons. For me, the appeal, from the get-go, has always been MULTI-TIERED PROTECTION. As was mentioned earlier, there are three types of security:
1. Something you know: lock combination, password, etc.
2. Something you have: key, credit card, RFID, etc.
3. Something you are: fingerprint, heartbeat, retina, DNA, etc.
COMBINING two (or three!) of these things is exponentially more secure than using just one alone. If I had to pick just one, it would definitely be #1 because it can be changed anytime and can be as complicated as you like. But having your iTunes account require BOTH your password AND your fingerprint before authorizing a purchase is even better.
And consider that getting a fingerprint requires propinquity. You can't do it from half a world away. Whereas your password can be hacked from anywhere.
I still think that TouchID (and similar biometrics) is important and will be used more and more in the years to come, but not as a replacement for, but rather as a supplement to the password. And we can see this attitude in some of the great points, thoughts and suggestions made here about how phone unlocking could best work. Initial opening requires PIN, but then after that, for a limited amount of time (which would be set by the user in settings) FP alone would suffice to unlock the phone.
Anyway . . . very interested to see how this all develops.