This isn't simply a matter of looking at metrics and making changes to increase conversion rates. The problem is that the whole of users have come to expect Facebook to be a place where they can see any and all of their friends' updates. When I look at an ad, I know I am being manipulated. I know I'm being sold something. There is no such expectation of manipulative intent of Facebook, or that they're curating your social feed beyond "most recent" and "most popular", which seemingly have little to do with post content and are filters they let you toggle.
What FB has done is misrepresent people and the lives they've chosen to portray, having a hand in shaping their online image. I want to see the good and the bad that my friends post. I want to know that whatever my mom or brother or friend posts, I'll be able to see. Someone's having a bad day? I want to see it and support that person. That's what's so great about social media, that whatever I post can reach everyone in my circle, the way I posted it, unedited, unfiltered.
To me this is a disagreement between what people perceive FB to be and how FB views itself. What if Twitter started filtering out tweets that were negative or critical of others?