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Nah, I think the socializing aspect will outweigh the lack of privacy.

>'uncool website their parents use...to spy on them'

Thank you for showing me how to prevent my kid from joining: "Here I want you to make a facebook account so I can keep track of everything you do online and make sure you dont make any weird friends. I also want to check all your wall posts to see what you and your friends are saying. Here is your password."

If your kid doesn't think to him/herself "fine, I'll make my own account" then they're either far too young to be on facebook or a moron.

Unfortunately, the aversion to being spied-upon is also being bred out of the gene pool at a rapid pace.

Teenagers don’t care whether people who will not tell their parents (i.e. the overwhelming majority of people on Earth) know that they were drunk last night, they do care whether their parents know. I think that’s actually an important distinction.