Hmm, I personally think Facebook has greatly improved the privacy options. Yeah, I suppose the original toggle switch was more definitive, but it also meant I couldn't be at all selective about my level of privacy.
Oh, and you were greatly mistaken if you thought facebook used to be MORE private by default. One of the biggest early complaints was just how much info was available to "your networks" (which you became a part of whether you knew it or not) by default. The only difference now is that they make the lack of default privacy more obvious.
I still have a lot of issue with the usability of the added privacy features, but putting UI design issues aside I've found that, with little exception, each change has been a step in the right direction for privacy control. Facebook becomes much more functional (and distinguished from other services) for me the more finely I can filter what I post.
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'He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me.'
-TJ
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