This privacy freakout is really amazing to me.
I've already had to deal with two stupid surprises in the last week: the expansion of their ability to track your use of other sites, and their mandatory conversion of your likes/interests/employer/etc. information into "likes" on an automatically-generated community page. The former is genuinely intrusive, and while the latter is arguably trivial it creates another entire layer of crap I have to manage. (I also lost most of my likes & interests in the conversion because it wasn't clear that disallowing the "like" would actually delete the entry. Pricks.)
When I first joined I was kind of amused at my friends who had registered under pseudonyms -- but the benefits are becoming apparent.
The News Feed is shared with people you know, and only people you have added as Friends (or sometimes one step removed when somebody you know comments on a photo or something).
Beacon was about selling your information to advertisers and 3rd parties whom you had a very loose connection with. The example being the guy who bought his engagement ring and had it broadcast via facebook before he was even engaged.
With the news feed, you control the information which is posted (with the exception of being tagged in photos).
Now Facebook is sharing your information with 3rd parties whom you have NO connection with.
I don't use Docs, Yelp, or Pandora, but they were given access to all my information.
Remember, they were 'given' access before Facebook announced what was happening. Before we had the option to opt-out.
I'd rather a company like Facebook err on the side of innovation.
Similarly with "daring" -- you often hear of "daring robberies" and the like.
Personally, I don't give 2 hoots if companies want to sell my information to each other. Good on them. I lose nothing by them doing it. Couldn't care less. (As long as it's stated in T&C that they are doing it).
It's especially ironic, since people moan at the music companies, saying that downloading music illegally isn't theft, since you haven't deprived them of anything.
One of the biggest reasons I think this might happen is because a vast majority of people still trust what they hear on the TV or radio over some website or online document that says Facebook cares about your privacy.
That's because they're intentionally byzantine.
I don't know that betting your business against growing storms of criticism on nothing more than a reverse gambler's fallacy is the best plan, tbh.