I was talking to Meg today on the phone and she let me in on a few privacy settings you can do on facebook. I guess they were there all along if I had looked for them, but I quit playing with that stuff after I initially set it up. They have added more options since. It's pretty customizable. By clicking "privacy" in the upper right of the home screen, you can control who: sees your profile, finds you in a search, sees your status, peruses pictures of you, and a bunch of other stuff. I went on tonight and tightened some things up. For instance, now faculty can't see my pictures or status updates.
I have "facebook stalked" people, including my good friends in real life. However, my "stalkings" are usually limited to a once-in-a-while browsing of their pictures and reading some stuff on the wall or favorite _____s. I also like to check my new friends to see if we have some random friends in common...it's cool how the "small world" thing plays out in so many situations.
I've heard of some pretty sketch practices though. I think that the feed helps people stay on top of your life...even easier than constantly checking your away message. I mean, that stuff is totally legit if it reminds you of stuff that your friends are doing. I guess like anything else, moderate use is cool while extremism is bad.