Robert Scoble has some suggestions on making fb better, more private, with more privacy-informed users; and here are some more from venturebeat. However, at the heart of fb is a goldmine named "Social Graph". Increased privacy by default will erode the value proposition of the site for business and advertisers. The gold will quickly turn to silver, then copper, then lead, then friendsterium.
Dirk Dot Net
Creator of useful things. Based in Chiang Mai, Northern Thailand.