The energy density is low and very nasty radiation is produced- the containment vessels will be a bigger nightmare than fission waste.
This is incorrect. The waste products of fusion have a tiny half-life compared with fission, and would not have anywhere near the same environmental problems. Plus there is zero risk of reactor meltdowns or byproducts being used for weapons.
Fusion is definitely advancing, but as with any advance as your chart into new territory you find new obstacles. At the moment the biggest issue is finding the right materials to line to tokamak with - materials that don't vaporize and leak cold matter into the reaction chamber. Sustained reactions of a couple of seconds have already taken place in JET, and several minutes will be performed at ITER. This may not sound like much but it's a huge technical achievement, right up there with putting an object into orbit.
As for how to actually take energy out of the plant there are plans for that. It's the most boring part actually - the heated walls of the chamber will vaporize water which will drive a steam turbine, just like in a coal power plant. Ancient technology attached to a super-advanced generator - kinda depressing actually...