The actual offending paragraph of the Terms of Service read:
You hereby grant Facebook an irrevocable, perpetual, non-exclusive, transferable, fully paid, worldwide license (with the right to sublicense) to (a) use, copy, publish, stream, store, retain, publicly perform or display, transmit, scan, reformat, modify, edit, frame, translate, excerpt, adapt, create derivative works and distribute (through multiple tiers), any User Content you (i) Post on or in connection with the Facebook Service or the promotion thereof subject only to your privacy settings or (ii) enable a user to Post, including by offering a Share Link on your website and (b) to use your name, likeness and image for any purpose, including commercial or advertising, each of (a) and (b) on or in connection with the Facebook Service or the promotion thereof. You represent and warrant that you have all rights and permissions to grant the foregoing licenses.The most disturbing sentence in the paragraph above is this one: "with the right to sublicense". Which essentially is Facebook telling their users that they can sell the subrights to any posted content on Facebook. This includes your personal information, any notes you import as RSS feeds and your personal photos. And theoretically, the way this is written, if you're an author who posts portions of your work-in-progress on your Facebook account, those portions belong to Facebook. Forever.
Why didn't Facebook users put up more of a fuss when the Terms of Service were changed? Because Facebook didn't tell anyone they'd changed them.
So am I going to delete my Facebook account? Nope. Facebook is still a valuable networking and promotional tool. I've always been pretty careful about what I post there, and the few photos that I have online of my cats aren't going to fetch any big bucks. And my blog is licensed under a Creative Commons license. Pretty much anyone in the world can use these blog posts with attribution. (Or without; like I can control that?) And if Facebook really wants to compile and sell a list of my crappy Lexulous scores and the number of times I've been fed to werewolves by friends to gain points in our ongoing Vampire/Slayer/Werewolf/Zombie struggle for world domination, well, they're welcome to it.
But of you're a writer/photographer/creator of any kind, I would suggest not posting any intellectual property on Facebook that you may want the right to sell later. Just in case.
More at Consumerist and Technosailor. Read the full Facebook TOS here.