That's not Facebook invading your privacy, that's other people invading your privacy.

If Facebook exposes your account information to everyone when your friends tag you in their photos, and you have tagged photos set private, that's a definite leak of data.

However, if memory serves, Facebook does not link back to your account if friends tag you in their photos, and you have tagged photos marked as private.

I may misunderstand your problem, but I fail to see where Facebook is leaking any information.

This is what happened to me when I first signed up for Facebook. Even never having had an account with them in my life, 3 pages in to the signup it popped up a photo of my face and asked me if I wanted to set that as my profile photo. I left immediately and have never returned. I know that whatever I do online is a matter of public record, but it still creeped me out to the extreme.