I find it hard to believe that the reason for Facebook's poor search is incompetence (although I won't dismiss it out of hand). Doing a decent search through a set of local records isn't rocket science. I would think it might take a programmer a couple of months, and they have thousands of developers and billions of dollars to play with. Instead, my guess is that they make the search perform poorly on purpose, to force you to scroll through pages and pages and thus view more ads.
Disclaimer: I no longer have an FB account, so I don't really keep on top of these things.