Privacy is the main issue given in this article, but what I think is misunderstood is what the information is used for: advertising. I could be completely wrong, in which case I would feel quite stupid, but Facebook isn't selling your 11-year-old's information to serial killers that enjoy killing children simply because they know where the child lives and likes Snickers candy bars. People need to calm down and realize what the term "personal information" actually means. I understand that building a brand name into a child's mind may be considered morally wrong, but it's just advertising.
One of the other huge issues about Facebook is bullying. Cyber bullying can cause a lot of problems in the development of a child as a human being. Hold on, so does NON-cyber bullying. Only difference? Online. This has some upsides and some downsides to it. Bullying done online has a larger audience, so it may be more embarrassing for the victim. On the plus side, the evidence is always there, an authority can catch a bully much quicker, and they can be punished and stopped. On the playground, bullies are sometimes never caught, because the victims fear what will happen if the bully finds out.
When I started Facebook, I thought it would be a fun way to be with friends in a way and never be out of touch. I don't get on often enough to make full use of this, but I do use Facebook to plan social events, where I can interact with my friends. I think people in general are just too quick to overreact to the "evils" of Facebook.