There's going to be an upper bound on how much Facebook can push the envelope on privacy. Eventually, they're going to hit the point where the users, the publishers, or even the government will not allow them to go any further.
Facebook's big gamble is that this upper bound is high enough to allow them to make money off of exposing personal information to third parties. It remains to be seen if this is true, and if it is, if it's sustainable.
All it takes is one rogue app developer to harvest some personal information and use it to harm someone to scare people. If the mindset of the public shifts such that people start to back away from posting or publishing personal information, Facebook loses.
It's a precarious situation for Facebook, really. Their success hinges upon people being comfortable with losing their privacy. Google has a much better revenue model since it is not tied to there being a conflict of interest between them and their users.