Mobile phone authenticators are very secure and are currently used across the business world as a way to lock down sensitive networks, etc.
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RSA SecurID is an industry standard. In fact, the iphone version of the app requires it's own 5 digit code to even access, so if anyone wants to hack your SE acct, they would need the following:
- Your SE Acct User Name
- Your SE Acct Password
- Knowledge that you are using your iPhone Authenticator and not a Security Token
- Your iPhone
- Your Phone's password
- Your Security Authenticator Password.
If anything, an iPhone Authenticator is even less likely to be compromised than a security token (which has a FF logo on it btw). Impossible? No, nothing is impossible in the world of hacking, but if anyone goes through all that to steal my acct -- until I call SE to get it restored -- then good luck to them.