Certainly. You make the assumption that each of the factors you lists reduces the probability of a mis-identification. But one of them actually increases it.
You suggested a 0.05 probability that "my given fingerprint will be machine-matched with any other given person" -- or equivalently for any two people (A and B), the probabiliy that A will not be misidentfied is 0.95. (That's an unreasonably high probabiliy of misidentification --- but that makes the math easier to work with).
Now, let's look at three people -- A, B, and C. What is the probability that A will not be misidentified as B and will not be misidentified as C? The probability that A will be correctly identified is actually 0.95 * 0.95, or only 0.9025! For four people (A,B,C,D), the probability that A will be correctly identified drops to about 86%, and so forth.
In fact, under this set of assumptions, if there are twenty "terrorists" in the database, then the probability that a person will be falsely identified as a terrorist is nearly two out of three (64%). If there are 100 terrorists in the database, then the chances of making it through a terrorist screening unflagged are about one in two hundred. To put it another way, if a 777 full of people arrived at immigration, we would expect two of the passengers to not show up as "terrorists" in this database.
I think it would be worse than that, because it will not only be a question of being mis-identified as a known terrorist, everybody who get different identities from the fingerprints and their passports would be suspicious. Maybe not from the start, but pretty soon.
As the database of fingerprints to search gets large, this will only make huge amounts of Passport=Mosquito, Fingerprint=DrKitten, Conclusion=Possibly up to no good, further timeconsuming checking required.
If not, the security dudes and dudettes will quickly become numb and not bother raising an alarm if a "7 foot bearded arab with a dialysis machine" got a match with some terrorist guy or other. Why bother, their own brother matched that one only last week.
Mosquito - Not impressed, yet (the system could be rather good for fighting some crime, but I doubt plane-related terrorism is one of those)
