> For content that is covered by intellectual property rights, like photos and videos (IP content), you specifically give us the following permission,
SUBJECT TO YOUR PRIVACY and application settings:
you grant us a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post on or in connection with Facebook (IP License). This IP License ends when you delete your IP content or your account unless your content has been shared with others, and they have not deleted it.
It says that their license to display the image is subject to your privacy settings. Simply setting the image to Only You doesn't remove the image, but would ensure no one can see it. It effectively revokes Facebook's license to show the image to all your friends. If none of your friends can view it, they cannot share it, and it should remove any of their previous shares. Then you can delete it.
EDIT: Come to think of it, I have a feeling that "unless your content has been shared with others" behaves more narrowly in practice than it could by reading the text. Probably, it would apply to edges cases beyond Facebook's reasonable control - like a notification of a picture to a phone. The app only checks for updates every so often, and it may be out of service for a while, but a thumbnail is sent. You could delete the image, but until they check Facebook's servers, the person has effective control over the thumbnail, which is a derivative work of your copyrighted image, legally. Facebook is just covering their bases there.