Why would they have to argue about this or about "google street view"?
Because banning a website in most western countries is too close to government censorship, which also scares people. If they are knowingly blocking FB in your country, what are they unknowingly blocking too? This was a popular topic in Australia, where they had/have a "public" blacklist (supposedly only of kiddie-pr0n sites) but also a secret blacklist. Which may or may not really be limited to kiddie-pr0n. See, because it's secret, the citizens don't know for sure, and have to completely trust their government. And that doesn't work in societies who think they are free.
So Germany discusses it. So citizens can decide with a vote or something what they want. Many people do not want their houses, cars and front yards showing up on the internet via Google Maps (even though Google blurs out faces and license plates, somewhere there are the original photos sitting around... suppose Google got hacked again and someone got ahold of those and posted them? So long as they (google) have the data, and that data sits on a machine with internet connection (which, who knows, maybe they do), this is possible. It's happened before).
So Germany banned street view, or it was banned (might not be anymore). A majority of citizens supported that. Next year, they may change their minds, who knows.
Anyway, the problem I think FB has is its own users: they seem to think they are somehow more private than they really are, which is why most people don't worry about it. It never occurs to them that maybe their health insurance companies or their employers might be checking out their profiles, let alone spammers and advertisers and crazy who-knows people. <-- this app does not ask anything MORE than any other FB app. It's simply more explicit in telling what exactly it wants access to. Your games and hugs and hearts and whatnot have exactly the same access, and you gave it to them.
The argument against privacy is always either: if you've got nothing to hide, then you must have no reason not to tell everyone absolutely everything about yourself, your home address and how much money you earn and walk around naked and candidly tell everyone about your herpes, because after all, you're not doing anything illegal and so have nothing to hide.
Or it's "you chose to put that stuff online, therefore you must be okay with everyone knowing about it and discussing it".
The second one has more merit, except the problem is people don't seem to be aware of how the internet works and think telling their FB friends their hometown isn't the same as telling every stranger in the world. They don't see the connection at all sometimes.
My husband works for a company who places online personal notices for newspapers. The number of times someone has placed a photo or video and then call/email later and say "oh no, the image/video is showing up on Google! Can you remove it?"
Of course he can't. Google's indexed it. That means it's Out There. There is no taking it back. Why didn't you think of that before uploading the file to a public, indexed-by-SE's site? Because people don't see the connection. They don't realise how the internet works, yet they use it regularly.
So I don't mind laws and things to help improve privacy but I'd much rather that kids get "internets 101" in school so people can make their own decisions and they won't be dumb ones. Just because internets looks easy doesn't mean you don't need to be taught some important things.