Most people, when asked outright, will tell you they don't want every, single little thing they post shared to the world, searchable and existing in perpetuity. Just like they'll tell you they don't want to see ads. However, when you try to explain "privacy settings" it's often not understood (my mom), or not worth the effort. It's opt-in vs. opt-out; if Facebook were opt-in, it would have created precisely zero billionaires.
I've also noticed privacy settings inexplicably changing after I have set them, and game stories showing up in the news feed no matter how many times I unsubscribe from it.
So one of two things is true. First is that I am somehow special and Facebook works differently for me than anyone else. Short answer: No.
Secondly is that Facebook's privacy settings is a mess and confusing to the public at large. You could make a very, very good case for that.
Also, just because your friends are trying to get you to re-sign-up doesn't somehow indicate that Facebook is doing something untoward.
I concur with the original post that Facebook sets and unsets options, or in my case ignores them as it sees fit. In one example, I have a friend who no matter how many times I 'unsubscribed from her game feeds', or blocked her game apps, still appeared in my news feed. I had to unfriend her to stop the spam appearing.
Have never had problems with Facebook privacy settings.
I won't log back in to really delete it, since the last time I deleted it it told me that if I ever log in again - which I totally, totally can, no hard feelings at all! - it will just reinstate it for me.
So the idea of "privacy settings" is pretty silly of you to mention.