"They're not a product company, they're a distraction company."
Correction, they are a surveillance company. Need I remind everyone of Google and FB's In-Q-Tel CIA partners in crime? They just figured out a way for everyone to willingly report on themselves, but not just on themselves, on others too! FB is bad and should collapse like every other dotcom boom-bust that uses and abuses it's users... but the difference is the level of monopoly on non-technical users that didn't exist in the 90's. Back then the technical community could have dropped a product like hotcakes and watched it bust... but due to the increase of non-technical users who sign any EULA/TOS and don't give a crap about privacy... I expect nothing will happen until something really bad and at a massive scale happens.
For those who are younger, consider this the slashdot/digg/reddit cycle. Reddit will die next the closer it gets to IPO too.
It's the beauty of computing though. Every market is ripe for disruption if someone has a good vision and follow-through. The problem is that so many of them use the exact same model and a few years later are the ones dying due to lack of integrity.