(This will be an unpopular opinion)
The community response to this is ridiculous. Off the top of my head, I can't think of any other company that has responded to community criticism within a day or two with a policy reversal, a software change, and a deletion of offending data.
Guys and gals, stop picking on Path. They are AWESOME. They deleted your data and changed their app so it would never happen again. Try that with Facebook.
As a nerd, on some level I too lament that they didn't fix this with a cryptographic hash and a bloom filter, but come on, as businesses go, this is top notch.