I agree that there have to be limits , but it's not an 0/1 question. Facebook should even be treated as a special case because it's a monopoly, but again it's not 0/1. I doubt they can offer the same service without targetting - facebook makes $100+ from each user in US or western europe. If they made 10% of that they couldn't offer to e.g. store all your photos and vids for free.

And lets not kid ourselves, very few people would pay $100+ for facebook, even though it would be interesting to see them offer that option.