Facebook have changed their privacy settings again, but they hope for the last time. This time they've simplified things, whilst maintaining their more granular controls as well.
You now have: a privacy master switch option; an application switch to stop all your data from being shared with applications, including stopping friends sharing your information on applications; the option to hide your friends list and interests;
Mark Zuckerberg's blog entry:
http://blog.facebook.com/blog.php?post=391922327130
Allfacebook gives a good point by point overview:
http://www.allfacebook.com/2010/05/facebook-privacy-must-know/
Zuckerberg explains it's not about the ads:
http://gigaom.com/2010/05/26/zuckerberg-its-not-about-the-ads/
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