I was going to report a malicious app to Facebook, but...
My first instinct is to comment on the post that nobody should click the URL, so that all of our friends are suitably notified, but in this case I had a mind to report the app itself. Lowering my mouse cursor to the similar-to-innocuous name of the app, I was struck by fear: what if this puts some crap on my wall from the app maker (even if I don't install anything). After all, I have to go to the app's site within Facebook. What if there's something malicious stuffed into the description or something?
Just like we saw with Microsoft all those years ago, this is yet another downside of being a big fish target of hackers: why should I contribute to what is apparently a black hole, helping a lost cause with security, and possibly harming my own resources? People just started expecting Windows to be bug ridden, blogging about how quickly an unpatched Windows box would get 0wn3ed on the open Internet (something less than 30sec, IIRC).
These kinds of problems were also demonstrated by Microsoft to be mostly a PR problem, but after a point it really starts to hurt the brand. I don't know what Facebook's internal metric for basic success, like what sales would be to Microsoft, but I have to think that follow-on effects from bad apps factor into it.