Of course this is some kind of improvement already for Facebook's standards.
Zuckerberg: “Guess What? Nobody Wants To Make Lists.” http://techcrunch.com/2010/08/26/facebook-friend-lists/
Of course, they're a HUGE pain. I mean really, I use them.
I thought the whole meaning of "hacking" was to let more people do more things easier. Instead, we need the world to be a more "open place" (in a huge walled garden), that sounds like someone sticking too much with his PR.
Facebook has already started looking messy (every time a new service comes out it has to be built in the "Social" Network apparently) and will continue to do so now that Google has started giving a serious approach.
I'd be glad to see Facebook "pivot" over Circles so I might KEEP using it instead of a address book.