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Yes it does seem too good to be true, but remember only the Apple laptops currently have a touch bar so applications must already support user interfaces that don't require the touch bar.

It's a bit strange. I really wanted a MacBook with a touch bar as I find the idea of it really good. I realize that it had many design problems but I still think that it has merit.

Would it make sense for Apple to keep the touch bar ABOVE a row of physical function keys? That way people wouldn't constantly accidentally press it as the function buttons act as "shield" from touching it accidentally.

It's possible that they will remove the Touch Bar because the main screen will get a touch support. The Touch Bar API could then be migrated to a specific region on the main screen, without app devs having to do any extra migration work.