That's not value for the average Facebook user (for advertisers? sure, very much). Google still makes bulk of its money from advertising. As you admit yourself

That's not value for the average Facebook user (for advertisers? sure, very much). Google still makes bulk of its money from advertising. As you admit yourself, facebook has precious data for advertisers that Google doesn't. Facebook is pretty directly competing with google already and getting ad dollars that would have otherwise gone to Google. This is not easily noticeable right now because advertising is still growing pretty rapidly so everyone(including google) can show growth but over time, it will begin to show that Google has lost a specific type of ad market. As long as people stay with FB... So I have been on facebook since 2005. For over 5 years now, I have heard the argument that facebook is going to be another friendster and then myspace. I think it is time to put this argument to rest. Sure, facebook will die some day but I don't think its death is imminent.