This is not a comment specifically on Path -- I don't know anything about what they are doing or not doing. But more generally: one of the most interesting parts of startups is the tension between "Don't Be Evil" and "Don't Fail". It would be good to be able to discuss this more openly -- "Don't Be Evil" by itself is too utopian. Many of the most successful companies in the world did things in their early days -- or…
However, problems arise when startups begin to think that behaving this way is 'normal'. During the previous furore over Path grabbing address books, the CEO claimed it was "industry best practice". Just because (nearly) everyone does it, doesn't make it "best practice". It actually belongs on the 'list-of-dodgy-things' and therefore should be treated with the appropriate caution.
This is one reason I have a gripe with the "Move fast and break things" bandwagon. It's not really appropriate if you're stumbling around in a minefield.