It's not a fake. One of the principal analysts at the company is a friend of mine (he told us about this hack two days ago), not to mention a devoted Apple fan (and fulltime iPhone user).
The hack is definitely real (and it's not really a virus in the sense that it doesn't self-replicate - it's just an exploitable flaw that allows arbitrary code execution). That said, it really doesn't make a significance difference (though Apple should, and undoubtedly will, fix it). Unless you lock your iPhone with a passcode (which would be a major PITA), it's an inherently insecure device and should be treated as such. This hack doesn't give someone substantially more information than they could get by just pick-pocketing your iPhone or finding your lost iPhone. In other words, don't store anything on your iPhone (or any phone) that you feel must stay confidential.
Any limitations Apple puts on 3rd party apps are more likely for *reliability* than security. The iPhone is - like all cell phones - an inherently insecure device.