Absolutely not. A doctorate is an apprenticeship in research, and the thesis produced is your "final test" as an apprentice. It's supposed to be the start of your academic career, not its pinnacle.
That said, I think it's an unfortunate course of modern research that the prestige of a doctorate has eroded over time...
Now it is more synonymous with magnum opus, among the very best works of an entire career. Perhaps ironically, with respect specifically to the dissertation it is a common mistake to try to create a masterpiece in the modern sense rather than the classic sense. Probably because every field has legendary careers that were launched with the publication of a game changing dissertation. This is one thing that can cause ABD to drag on forever.
Rewarding such a lack of integrity is a terrible precedent to set. We know this is not the only time people have done something like this, and now people who do this, have done it, or may do it can all see that they may not have as much to worry about since we're now in the practice of shrugging and looking away rather than enforcing any reasonable code of conduct... even the ones that already exist.
The question isn't whether he "deserves" a PhD - it's whether he earned it. He certainly couldn't earn it with a thesis that relied on fake data.