If you have, which probably anyone concerned with privacy has, they default to "not everyone" choice.
The rest of the point stands - people use facebook to keep in touch with their friends. They're not interested in content propogation to strangers.
I had not read about this, signed in last night to get a message from my sister-in-law about Secret Santa arrangements for this year, and got hit with the prompt. It defaulted me to everything being public. I don't know whether I count as "anybody concerned with privacy" or not, but my understanding on Facebook has always been that when you Google for my business you do NOT see how long it has been since I broke up with my girlfriend. The fact that that would have changed if I was not extremely thorough at clicking my way through their roadblock was upsetting to me.
I have set all my privacy settings to very private settings in the past and my defaults are all to share with everyone. So at least for me, this is NOT the case.