The idea that you even have privacy controls, regardless of what Facebook states, is a curious stance, since historically Facebook has manipulated that data with third parties anyway. Facebook cannot ultimately control breaches to its service, its members, or third parties. These are not going to help you whether a checkbox is checked or not. There isn't a day that goes by that cross site scripting isn't going on on Facebook.

The concern in the security community is that Facebook doesn't attempt to protect the data it does collect, but doesn't display publicly. This is a concern with Google, Yahoo, Microsoft, etc. Most people don't care because they think "I never put anything critical online," the problem is you don't even need a single "super-private" datum to phish people. Just phish their friends, relatives, any combination to pull the data out you need. I beat this drum to coworkers/friends/family, but nobody listens. This is a disaster of the tin-foil-hat variety waiting to happen.

This isn't necessarily a Facebook problem, it's an Internet problem. Google, Microsoft, etc all have the same concerns, and it's only a matter of time before your supposed private data is released to the hounds.

"If you don't like this idea, just quit Facebook, quit using any Google products, quit using any search engine."

Never would use facebook, I quit all Google Products minus search, and I don't retain cookies across most sites. Oh My Golly I'm still able to exist on the Internets!