Facebook isn't a competitor to most B2B products, but it's defintely the Excel of the B2C world.
For the other cases you mentioned: Groups to collaborate, Events to organize - these are all completely underwhelming alternatives to other market products. The biggest tragedy of Facebook is that it has enormous scale but it can't write comprehensive products that satisfy all of that scale uniformly. You get the lowest common denominator, which is why customers go for niche alternatives.
Excel is not Facebook. Yes, Facebook is big. Excel is big in its industry. However, Excel has just enough of a balance between niche and scale. Excel is about computation and reporting. It solves a very specific need that is fortunately applicable in all types of applications. As soon as you try to go outside the bounds of what Excel can do (large data analytics, more customized reporting, interactive applications) you stop trying to rationalize Excel and start using other tools. People do the same with Facebook. More people do it with Facebook because Facebook doesn't effectively solve as many core needs.
There is a vast untapped market of digital semiliterate that only waits to be tapped. See also: medium. Why that and not wordpress.com? Because they speak the right language.
As for poor information, I don't see how that's the result of Facebook. Plenty of restaurants neglect all sorts of information on their websites. Add in that plenty didn't bother with websites before, but now have a Facebook page, I'd say Facebook has drastically increased the amount of information available on restaurants.
People are increasingly aware of security as a problem - it only takes one business you know to have their WP install hacked and start distributing malware before you say "hey, maybe not" - and things like Squarespace offer very attractive themes, no need to keep updating the install, and a lot less technobabble.
(I must admit I'd almost never recommend someone without technical knowledge set up their business website using self-hosted WP these days. Go for a WP-specialised host that'll handle the caching and security, or go for something like Squarespace.)