Her point that Facebook's privacy issues will bring (possibly heavy handed) regulation to social networks doesn't seem far off to me. Senator Chuck Schumer has

Her point that Facebook's privacy issues will bring (possibly heavy handed) regulation to social networks doesn't seem far off to me. Senator Chuck Schumer has already written a letter to the FTC requesting that the agency set up "guidelines" for how social networking sites may use personal information. Four senators have also written a "letter of concern" to Facebook over recent privacy gaffes. Legislation is almost certainly currently in the works. If not at the federal level, then at the state level. The end result probably won't be pretty, and has the potential to hurt a lot more than just Facebook. Imagine if a small project like Diaspora had to worry about something similar to HIPAA compliance...