It wouldn't surprise me if Facebook created profiles for people who've never used it, just by virtue of having enough of their friends having their contact details. IE if 5 people are friends and all have "fred bloggs" in their contact list then there's a good chance it's the same "fred bloggs". I'm not sure what this virtual person is worth to advertisers, though, just like I'm not sure what you're worth if you don't use it any more.

They absolutely do this and have been doing it for awhile. If you google "Facebook shadow profiles" you'll get plenty of info about it.

The EFF wrote a nice stinging indictment of Facebook, Internet Companies: Confusing Consumers for Profit: https://www.eff.org/deeplinks/2015/10/internet-companies-con...

That doesn't sound right. Have you tried logging into it again? If you can, you should be able to follow these instructions then which really do permanently delete the account:

https://www.facebook.com/help/224562897555674

(If you can't get in, reset password, etc?)