While I have complete respect for @raganwald, I find it somewhat disturbing that he would even begin to implement or go along with this policy. I can't imagine asking an interviewee to login to their private facebook account, any more than their private email or dating website.
The answer should have been no at the first suggestion and I hope he amends his blog to indicate that even the few times he did this was completely wrong, in addition to placing the company in a tenuous legal situation. As an interviewee, I would be outraged and walk out.