I think Facebook has done a good job helping people enjoy the habit of denying the importance of privacy in favor for a free service. I don't think many realize what they've sacrificed because they value it so little.
Well, that's what they make money off. It's their strategy/mission to eliminate privacy.
On the other hand, 24% of consumers currently seem to be OK with the fact that the NSA controls their iPhone:
http://www.forbes.com/sites/erikkain/2013/12/30/the-nsa-repo...
Exactly. Also, most people don't tend to question authority figures. That's what facebook has become for web 2.0 or whatever you want to call it, it's the thing that got most people to use internet actively as a part of their everyday lives.
Having a facebook account puts you in contact with your peers. Virtually everyone. It can be a huge social boost if used correctly (politeness, some language moderation, etc.), imagine how difficult would be for newcomers in town to socialize without using social media. Students that go away for Erasmus, etc. Facebook offers an incredibly valuable service.
What exactly will the NSA, Facebook or Google do with the user's data and how this entire privacy breach will actually play out in the future, no ones knows. Mind you that people actually like sharing their data with their peers and being part of a community such as this one.
Theoretically I can scrap all your posts run them through a "text analysis software" to extract data about your personality. So you're exposed anyway, the moment you put two words together online.
Most people don't realize the threat because everything is at virtual level yet. Only a few got bullied after online stalking. Once this group becomes a majority, things will change.