I haven't used Facebook at all and never will. If people don't want to keep in touch with me by using something else (e.g. e-mail, telephone) then so be it. Along with all the ills of social networking sites in general, there's a problem inherent to the idea itself: the rampant privacy and security issues there will never be properly fixed, since it's not in the interests of the company running it to do so. The product that they sell is personal information. They don't want any limits to it. They don't want the average user to have solid control on their information by default. How fucked up is that? They're basically saying "Your personal details are now a product and not really yours anymore."
They have privacy settings, of course. It's just that they should be enabled by default. Anyone who knows anything about data security will agree that
good default settings are essentially important. Most of the people using it will never change the defaults. Facebook is probably counting on this behavior and they will not change unless their entire basis for continuing their business is threatened. The only thing capable of doing that is the government and we all know how much governments can be trusted.
For example, why do users have to tweak the options themselves in order to opt-out of every kind of privacy-breaking "feature"? Why aren't the defaults set so that everything that shares your personal data is opt-in and can't be shared automatically or by accident? This will probably never change and even if it does due to some privacy law being forced through somehow, they will just find ways to circumvent it. Though this is something that every company does, it's even more glaringly visible in this case.
http://epic.org/privacy/facebook/