The damage is much worse - people are starting to associate Facebook's blunders with "everything wrong with Silicon Valley today." Take these issues from FB and combine them with all the other social issues SV is experiencing - racism, sexism, ageism - and the fallout could be very significant. Not helping is the products and services coming out of SV are increasingly being viewed with suspicion and disdain, as creating more problems than they're solving. SV can't stay on this path much longer. Instead of focusing so much on changing the world they'd better start looking at the man in the mirror and begin by changing themselves.
Facebook just has a big problem, a morality problem that started with "They “trust me”, Dumb f*cks", it seems they never got over that problem and now it is biting their collective ass