Ironically, this is the very same feature that I prostrated myself over here when it was down for a few hours 8 days ago (http://news.ycombinator.com/item?id=1333000). Which way do you want it, HN? :)
If I can preempt the inevitable flood of "How do you sleep at night???" variants: note that you can't really use this to target an individual user. There are 400 million people using Facebook. If you query something embarassing, you might see some titillating content go by, but that doesn't prove much of anything. Those same search terms typed into Twitter search, or for that matter Google, turn up a lot of material that I would not choose to share, but these people have apparently chosen to do so. If you really want to invade privacy, stream search would be a spectacularly stupid way to do it; any given result has a 1 in 400 million chance of being from who you're looking for.
Like Google, Twitter search, and every search box on every web site ever in the history of anything, this search feature is privacy-neutral: it only allows you to see what you were already allowed to see. Does the fact that Google'ing for "my rectal surgery" uncovers some over-sharing make Google, or the web, evil? Or is it at least possible that the good done by answering legitimate queries outweighs this apparent harm?