Do you have a link to the touchID update? Because there's touchID the software, and touchID the hardware. The software interfaces with the actual circuitry but can still only basically say "can you please encrypt this?" and "can you please decrypt this", in addition to saying "hey was that fingerprint valid?" - that's it.
Even the OS-level software doesn't have access to fingerprint data. Heck, even the physical WIRES that connect touchID to the secure enclave in the A7 chip are encrypted, so someone couldn't just hookup to the circuit board and read your fingerprints.