Yes. It's about social networks, not Facebook in particular. The alternative is choosing not to participate. This is an intrinsic problem. You participate in a social network; you choose to be connected; you learn more about people and things in general, and as a result, people learn more about you. With technologies, there've always been trade-offs.
That's wrong.
I'm not participating, but I know that other people are posting pictures of me and reporting my whereabouts on facebook.
I've read somewhere that at some point in East Germany, 30% of the population were informants for the secret police / intelligence agencies. Today, wherever Facebook has traction, it's more like 80%, and they report MORE data than those 30% did (But I wouldn't blame them, because, well, 99% of people "reported on" are also reporting on themselves).
And I'm sure that every competent intelligence agency already has a live copy of the facebook database, whether by NSL or by bugging. If they didn't, they wouldn't be competent.
Trade-offs for sure.