My view: well, a great social platform like face book should have been very careful about privacy and security issues.It has redesigned privacy controls now, but the new controls don't go as far as some critics would like. Looking at the popularity of the site among the world web community, it will not have much impact on face book's reputation, though the users will continue to urge the CEO for better privacy and security control.
I agree with Sha. I use social networking sites, but I am also aware that they are as "harmful" as they are "helpful". You are willingly filling out all of your detailed personal information for the world to see and unfortunately many people do so blindly. It's not until you have every major news station/newspaper/news site running a story about "Facebook and privacy issues" that users will care.
Don't post what you don't want the world to see.
I think that anyone who values their privacy shouldn't be on ANY social network. I also think that anyone who thinks Facebook are the only ones doing this are kidding themselves. A friend of mine used to be a Myspace employee & she once said that if people knew what the company did with people's personal information, they'd be deleting their accounts fast.
Fact is, if you don't want your information out there, don't post it anywhere online. Plain & simple.
Very few people are aware of the privacy issues concerned with Facebook; so until and unless it directly harms them, it's certainly not going to cause Facebook any great deal of harm.
I'm pretty sure it will degrade their reputation, as their privacy reputation has never been on the way up. Heck, Zuckerburg peered into his own site's database to steal journalist's passwords from the start. It will be a long time before their reputation catches up with them though, unless they do something really stupid.
These "recent" privacy issues are just more of the same from Facebook. Hopefully it ruins it's reputation, but I don't think the average consumer would mind "personalization" (privacy invasion if you ask me). Interested in other people's thoughts on this as well.