Regardless of what people think of facebook and their business, this is a pretty big deal. As a very large tech company, they have the time and talent to develop their own switches. If they are releasing the reference implementations, unlike google, this helps anyone else trying to build the next big web company. The more information the merrier.
Yes, but only because they lag behind Google in this regard. Companies embrace and propose open standards in the areas they don't dominate. As soon as you hit a core competitive advantage, they get as closed as possible.
There aren't better social networks out there that would thrive if only they had better network switches.