I thought FB was generally making clever decisions up until they released, and subsequently deprecated (much of) the Graph API. Despite the many privacy issues that I didn't really think about beforehand, I thought the idea was genius: Facebook becoming a platform that offers a social layer on top of the internet, rather than just another data silo trying to keep users inside.

Even with all the privacy issues, I think the original idea has merit and could make Facebook more than just what it is now. And while I haven't thought this through properly, I think it's possible to find a way to pull off much of what they promised while respecting the privacy of their users.

Perhaps I'm wrong, and they gave up on the Graph API because they knew what would happen, but I can't help but wonder if the main reason they went the route they did is because of lack of imagination and a desire to 'make money' in a more conventional way (advertising?).