Not quite. Privacy settings allow you dictate who can tag you in pictures/posts and, if you so choose, you can completely disable tagging.
The issue is with plain (excuse me) stupidity. A girl in the year above me here at pharm school posted a rant about one of her professors on FB. This professor is friends with a friend of hers, and saw the post. Of course, the girl was punished. However, who is truly at fault, FB or the girl?
Okay, I didn't know you could choose not to be tagged, but the picture itself will still be up, right?
The girl is responsible for her own opinions, there is no doubt about it. Was her rant meant to be private among friends or was it public? Did it include confidential stuff? Because, I can't say I agree with the professor punishing her for it. Understandable, yes, but not the optimal way to go.
Amidst all this paranoia, let's not forget that Facebook is only a tool, a service that can be used by you and against you.
Also, there is a research paper written by Whitten and Tygar, that is widely spread around in the computer science community concerning the easability of using security. It's called Why Johnny Can't Encrypt. I don't expect you to read it, but I did link to it, in case you are interested. I will however use it a bit here. Information security is not the primary objective for a personal computer, and it will never be, thus most people are concerned enough to use it properly. Security will always be secondary, and as another result, there is far too little studies and research done on how to make security an approachable and easy for most people. What Whitten and Tygar came to conclude in their study is that most security software and such, aren't too easy to use, and as a result of that - security (and privacy) will take a blow.
I think it's pretty applicable to Facebook as well. If their privacy and security options are tedious (as jgray said) or complex to use, a big chunk of people will automatically compromise it. I don't think it has to do with stupidity (although sometimes it does, human stupidity is the cause of many bad things) as much as it has to do with security awareness.
Edited by Coq de Combat - 9/17/12 at 3:42am