or ... Facebook should just be a government-run utility (he does say it's becoming more like one in the previous paragraph)

I guess the argument against that is: if the govt is the only body that has legitimate use of force, then there is a fear that it will use the data it has on you for malicious purposes. that is a valid fear when you view govt as a bad thing, something that's not accountable, but does it have to be that way? think about this more