While I agree that their current privacy settings create complexity and "work," the solution to this problem is to refine the interface so that making privacy decisions is easier and more intuitive. This can maybe be done with the help of AI/NLP/image recognition ("It looks like you're smoking pot in this picture! Want Facebook to automatically make it private?"), or maybe they just need to explore some new UI design options. Regardless, the solution is not to get rid of the option altogether - the complexity exists because human relationships are
complex and require complex systems to represent the nuances of interpersonal communication.
It's like comparing the controls of a RC airplane to the cockpit of a 747: of course a jet has a ridiculously complex control system, it's a complex machine that's getting a lot of shit done at once. Any control you remove from a jet plane would certainly make it more "user-friendly," but it also becomes a less useful tool than it was before.
> what's the point of connecting if you're just going to hide everything?
Counterpoint: Where's the depth in your relationships if you cannot choose what pieces of information you share with whom?