You can't really blame Facebook as such, it's just sitting there on a server looking stupid, people misusing it or using it to the point of serious addiction have themselves to blame. It is a really good tool to use to keep in touch with friends as others have already pointed out but that's all i ever really use it for.
But i suppose the bad thing i see about it is that peoples lives are basically in your face constantly, some people use it as their bloody diary and you know about everything that they are doing, and everything you don't want to know they are doing. As regards privacy, well there are privacy settings to limit people viewing your profile and also to make sure that your profile can't be searched for on Google, but most people are just too stupid to bother with these so basically it's their own fault. Another serious privacy issue is people posting a link to their Facebook page on websites such as this, as i've seen in the Facebook thread. I wouldn't recommend anyone to do that, you'll end up becoming friends with some random creep (not saying that there's any here but you never know) and that person can view your personal details and basically view your life, again that's your own fault not Facebook's. My Facebook profile is like my inner circle, i don't mind becoming friends with random people on last.fm or whatever, but my Facebook is for friends and family and ONLY friends and family and only they can view it.
If people just took more care about their privacy and only use Facebook causally well then it would be a very good website to use.
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