This is going to be an interesting week for Facebook’s PR and legal departments
Facebook allows everyday people to share the minutiae of their daily lives with trusted friends and family, to easily distribute photos and videos - if you use it regularly you know how it has made a very real impact on families and social groups that used to communicate very infrequently. Accessible social networking technology changes communication between people in a way similar to if not as intensely as the introduction of the telephone and the printing press. It changes the fabric of peoples' lives together. 350 million people signed up for Facebook under the belief their information could be shared just between trusted friends. Now the company says that's old news, that people are changing. I don't believe it.
I think Facebook is just saying that because that's what it wants to be true.
Whether less privacy is good or bad is another matter, the change of the contract with users based on feigned concern for users' desires is offensive and makes any further moves by Facebook suspect.