Though I am not as worried about privacy and social networks as much as many I find what the company chooses to do with facebook and its settings interesting, I also like to know what I am able to do with it (which is again a function of what they are allowing me to do)
this article updates what is and isnt allowed after recent changes
http://gawker.com/5428155/the-facebook-privacy-settings-youve-lost-forever
I am particularlly troubled by number 3. To me hypothetically if I am friends with everyone I know I would want to be or would otherwise add anyone i wanted than I should not have to worry about rejecting others offers to be my friend. However at least you can restrict it to only friends of friends who can add you (although I personally do not care about leaving it set to everyone being able to add me).
Another very aspect is not being able to hide group and page memberships. This is exteremely critical for people to be aware of since many people join groups and pages that might be uppsetting, offensive or off putting to certain other important people such as potential employers.
In summation facebook is a great web application and deserves all the sucess it has had however they must be very careful about what decisions they make if they wish to maintain their success
