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I have more faith in the two-factor authentication challenge methods than the biometrics. Something about "scanning' a fingerprint or retina doesn't give me much confidence (as an obvious layman).
I see longer term success in the dynamic dongle-type phone apps than biometrics, and unfortunately we won't be motivated to adopt these until some major breach occurs (like traffic lights not being used until fatalities occur at specific intersections).
Most of the biometric systems I've seen are single-factor auth setups but I guess there's no reason you couldn't keep a password alongside your fingerprint scan. The way I always heard two-factor explained was "something you know and something you have". Type in your password, enter in your keycode/fingerprint/eyeprint, and you're good.
The place where I'm most concerned about the iPhone as an authenticator is the fact that it has to dock with a computer on a regular basis. It wouldn't be impossible to write a virus/trojan that compromises an iPhone while it's docked.
Either way, this type of enhanced security is a major step up from the single password systems we see all over the place now. You are right about people accepting improper security until it hurts them personally. It's a shame.
http://www.articlesbase.com/video-games-article...