FB is ingenious in how it leverages three amazingly powerful forces: Advertisers, individuals' Ego, and Group Psychnology (put more bluntly, herd mentality).
FB and the Advertisers are harvesting value from the herd, day after day. Brilliant (I'm not being facetious....this time).
It is brilliant, but that doesn't make it right. Facebook needs to recalibrate its moral compass. There are a lot of really good people working there, so I don't think it's an untenable problem; facebook hires good people regularly (I don't think I know anyone at facebook that I don't consider a good person, actually). But, there seems to be a disconnect about the badness of chipping away at users privacy for the benefit of advertisers and facebook. Facebook has definitely done enough things to make me mistrust them as a company since I've been a user...so, I don't share a lot with facebook, and I'm moving toward sharing less. My pictures are at flickr, and will remain there, for example.
FB and the Advertisers are harvesting value from the herd, day after day. Brilliant (I'm not being facetious....this time).