The author just overestimated the impact of the issue but the issues still exists and is very real.
This basically creates a sub-Facebook in which my close friends and I operate. I still see stuff come in from other people in my main friends list, but they don't see anything I do (unless I explicitly post on someone else's public item).
It's working out very nicely.
In real life, when you hang out with a group of people, everyone else is aware of who you are hanging out with at that moment. Facebook shows this information only to the poster. I am uncomfortable posting a comment on a friend's update that would be embarrassing depending on who else could see it. In a group of friends hanging out this would never be an issue.
I suppose there is some asymmetry in real-life social networks, but nothing on the level which Facebook encourages.
Just like real life.
It wouldn't be easy and you're not going to make everyone happy. 90%.
When posting party photos, only show them to people that either
- also attended the party - attended previous parties with me - interacts/chats with me often and is not in my professional (or family) network ...
It would need to be a lot more subtle than that, but it should be possible with all the data they're collecting.