In essence, Facebook has asked everyone to review their security settings, and given them more encouragement to limit information that one may have shared too casually in the past. It’s a good pro-active move of Facebook, to recognize the misuse of information and to prompt people to select higher security settings.
So what’s the fuss? No cause for fuss that I can see. The “Privacy Settings” page has all the options right there. The only cause for complaint is that the “Please Update Your Privacy Settings” nag-screen that appeared to everyone last week was too simplistic, and one really needs to visit the Privacy Settings page afterwards — as I certainly did (and probably millions of others did as well) after realizing that I did not remember what my “Old Settings” that it referred to actually were.
I ended up more carefully choosing my settings. And that is what this whole alert was all about.
BUT…What remains true is that Facebook Apps — those quizzes and such — have access to even info that you have set to be Friends-only or Friends of Friends! This ACLU application was written by the ACLU to show off the security hole that continues to exist to this very day, and which is a serious flaw in the Facebook system, since it even affects people who never use any apps themselves! (The apps can see your private info even if a single one of your friends uses the app.): http://apps.facebook.com/aclunc_privacy_quiz/