Facebook—the company, is morally bankrupt. Arguably the worst of the bunch. The overly invasive data-collection, sharing of data in questionable ways, repeated lying about.. just about everything... etc.
For me, the product is not appealing enough to compensate for the failings of the companies. If it weren't for the fact that so many friends/ businesses/ family rely on it for communications I would quit it entirely.
The user does not become a product because Facebook run ads, and they are also not entitled to part of the profit. It would be minuscule anyway.
No, actually, there is no real product, except the reach and engagement Facebook is able to create through the ads.
they become a product because Facebook collects their personal information and uses it to manipulate them for profit. Facebook could show ads without mining user data, without buying information from data brokers, and without creating shadow profiles for people who choose not to interact with their service. They do all of those things though because the user is 100% the product as far as Facebook is concerned.
Google made a bad decision by closing Plus, but I guess they smelled the stench in the media, and decided it would be bad for their public image. This is just my speculation, however.
Regardless, fact remains. Facebook is providing a great service to users for free.