Shit on your customers for a while and alternatives will pop up, it's inevitable.
. . . . unless you're a legislated or legislatively protected monopoly/duopoly/oligopoly/trade-group in your market, (like AT&T(et.al), the FED, the AMA, the RIAA, the MPAA, intel, Microsoft, Clear Channel, - heck, I even think PayPal has some sort of legal protection) -
WRT social networking, I'm not actually aware of any nasty patents or vendor lock-in tricks that Facebook has going on, other than the fact that, for a while, they actually kicked ass. And, I suppose, if they sucked-up to their press competition a little more, and gave away more mindshare, they might not be suffering as much negative press over their privacy policies.
Yes, I'm thinking, they would be "getting away with it" if they weren't somehow playing hardball with potential advertisers. Yes, their mistakes, and their surreptitious policy changes have been horrible. But I think the newsmedia has made a lot more noise about it than they otherwise would have - if they didn't view Facebook as a media COMPETITOR, rather than a partner. (ie. I can join a CNN group, and allow CNN to promote their junk on my Wall, and when I get sick of them, I can HIDE their noise. My guess, is CNN doesn't want me to be able to shut them up so easily).
I do agree that over the past 3-4 months, Facebook's activity/appeal has dwindled. This started to happen independent of the privacy concerns. Most people don't understand or care about the issues beyond a vague sort of - "ooh, that sounds scary". But I think the real issue going on is that they've simply jumped the shark.