Is Facebook (and others like it) "outstandingly stupid and overwhelmingly dangerous"?

Eben Moglen, professor of law at Columbia and director of the Software Freedom Law Center, has taken an interesting view of Facebook —

The point is that by sharing with our actual friends through a web intermediary who can store and mine everything, we *harm* people by destroying their privacy *for* them. It's not the sharing that's bad, it's the technological design of giving it all to someone in the middle. That is at once outstandingly stupid and overwhelmingly dangerous.

His point is a valid one; phone companies have strict prohibitions around interception (at least within Europe) and so do not retain the content of all users' communications. Facebook and the like are arguably not subject to the same restrictions, as it is unlikely that they are electronic communications services.

Do you trust Facebook for your communications? Or even "traditional" telecoms providers? What do you think of Moglen's pet project FreedomBox? It's definitely a fascinating idea, but I am not sure that it will catch on.