Yup, sad news.
Anyone who disagrees should try teaching an older relative with less than youthful fine motor control how to use a FaceID equipped iPhone.
Specifically the swipe-up gestures you now need for the unlock / home navigations?
(I initially thought you might mean faceid doesn't work if you're a bit shaky, but I just tried that and it surprisingly doesn't care.)
FWIW: Face ID is optional, and the iOS passcode buttons are very accessible.
I've had the opposite problem: both of my parents' (in their 80s) fingerprints have faded to the point that Touch ID no longer works reliably.