Yes, I think facebook started out right, but now the pressure to profit is causing them to make stupid decisions.
The key is to allow the kind of control people have in real relationships. From what I understand, it isn't possible to terminate facebook friendships, and that eliminates the basis of accountability needed for a good trust relationship.
all they came up with is letting you make one type of connection with other people with an account. nothing to see here. the only thing that makes it notable is the large amount of data put into it.