I'm watching the science channel's "Creating Synthetic Life" discussion panel on TV right now.... and Paula Zahn makes me want to cry. Her toughest ethical questions for the panel are "Are we playing god?" and "It scares me."
They did talk about bio-terrorism, but they dismissed the objection rather quickly with something to the effect of,
"human beings are cruel to each other, but this also has the potential to be very beneficial to us as well." This is very true, but if a terrorist group can literally manufacture any virus that they have sequenced, then a hemorrhagic virus could cause quite a lot of damage before anyone can do much about it. She should have pressed much harder on these points.
But overall, I'm in support of this research. I'm actually far more excited by this then stem cell research has ever excited me (which it never did much). Whereas stem cell research might provide many medical breakthroughs, synthetic biology could allow us to create new sources of fuel, help clean up oil spills, remove carbon from the atmosphere, etc. SCR benefits are almost exclusively medicinal, synthetic biology is affects everything from energy, to manufacturing, to medicine, to food, to well, anything that we can get living things (bacteria) to produce.