I am pretty sure that he is dead, that part they did not fake. A lot of things here does however seem to have fallen into place very, very conveniently, the timing especially, with the run up for next years election beginning and polls not looking very good for Obama at the moment. IF they did not kill him now, they have probably come to the same conclusion many others in the world have, Bin Laden died a while ago, either in some of the early cave bombings or through some other, non-assassinational mean. So to still be able to cash in on the "bin Laden is dead" fame and glory, they make an assault, show a picture of what could be a dead bin Laden, and quickly do away with opportunities to confirm that it is him (they have already buried him AT SEA, allegedly due to Muslim traditions of fast burials and a belief that no country would want his body.).
In conclusion, man is in all likelihood dead (and good riddance I feel) but this might have been staged to avoid anti-climax of the "war on terror".