I disagree with having a full-time UI element in place for a setting (well, series of settings) that should only have to be updated once. Certain things you can't retroactively go back and change (Example: another user shares a link you posted that's offensive to your new boss) or don't have immediate effect (Ex: search engine results), which this UI item might give the impression of having that kind of control. It also doesn't handle edge cases well (Ex: wanting contact info in the open, but not photo tags), instead covering them with blanket groupings and encourages users to be more ignorant of the intricacies of privacy really.

I think what Facebook should have done already is use one of their blue announcement boxes on the home page to notify users of their default "Everybody" status if they have it turned on and direct them to the privacy settings to adjust them.

Of course, I have everything set as openly as possible, so I really don't care anyways.