Social Networking or Personal Invasion?

I remember only a year or two ago, when Facebook was on the way to becoming what it is today, when everyone I knew was changing from MySpace to Facebook, leaving the profile-obsessive, bulletin-posting culture of social networking behind.
The one reason I didn't leave MySpace was because I liked to know what my friends were up to - which I could quite easily do by looking at a bulletin, which most people posted a few times a day basically telling others what they got up to that day. Interesting stuff.

Skip forward a year, and I find myself constantly and shamefully checking my Facebook in hope that there's a new 'notification' waiting for me to click; a wall post, picture comment, video comment, status update, anything.
What I've overlooked however is the sheer amount of information available to anyone, Anyone, just on the home page.

Today alone, on my homepage there are 3 status updates, 3 changed profile pictures (one of the people I don't even know), 4 tagged picture albums, multiple friend requests from other people to other people, video posts, wall posts, picture uploads, new events, old events, birthdays, and the extremely intrusive relationship change status.

All of this happens without the user's permission about whom the 'post' may be about.
I remember when I changed my status from Single to In a Relationship, several people commented on my Facebook - close friends and nosey strangers mostly. Yet the amount of people that approached me the next day in college to tell me they had found out - through Facebook - that me and my girlfriend were an item was overwhelming.

In a magazine article for Observer Sport Monthly, there was an article about a then Crystal Palace footballer, Ashley-Paul Robinson, changing his status to 'Travling 2 Bath With Fulham Fingers Crossed'. Needless to say, fellow players of Crystal Palace, managing staff, and the press all found this. Fulham didn't offer him a contract. The player got fined by Crystal Palace for revealing this information. The player now plays for a below-par football team battling in the Blue Square Premier South Division - put into context, about 5 leagues below that of Crystal Palace.

Upon signing up to Facebook and other social networking sites, I am aware of the Terms and Conditions of Use, but it still scares me how much sites like this can reveal about people, whether intended or not to be revealed by the user.
Just when will Facebook stop? When does it become a breach of contract? How is this allowed?