This tool is part of a much larger machine that may actually affect society more than it serves it.
The social implications (for good or ill) are greater than the immediate, personal benefits are (in aggregate).
Combine that with facebook's transparent use of corporate cohabitation with people's relationships, and I think you quickly have a society which is much more determined and artificial.
I don't think it means the end of individuality as we know it. We've had ad-supported newspapers for hundreds of years now and people seemed to manage okay.