Comment Re:Limey (Score 5, Insightful) 302
The issue with facebook is really rather simple.
Facebook's value for its investors is that it's a gigantic comprehensive advertising database where the marks *cough* I mean customers input all the data on their own. People put information into Facebook that they'd never tell someone taking a survey and you don't even have to pay someone to ask them the questions. Achieving this goal is basically top on Facebook's list of long term priorities, just as it will be on any other free social networking site which doesn't want to operate at a massive loss.
The conflict is that the users of facebook didn't sign up for that. They want and quite rightfully expect a certain level of privacy for the content they post on the site. You might argue that telling everyone about your personal life is the antithesis of privacy, but privacy is about your ability to determine your own level of disclosure, not having some specific level of disclosure which the older generations find appropriate.
Essentially the end result of all of this is that every 6 months or so, facebook tries to turn all the information it has into cold hard cash and shortly thereafter their userbase throws a wobbly and they have to back out.