If you have, which probably anyone concerned with privacy has, they default to "not everyone" choice.
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.
It reset my permissions to default and I didn't click through as most people probably did. I went through my privacy settings afterward and found my application settings reset to allowing any and all applications to see all my data. I had a good number of applications blocked and my blocklist was purged. A few other important settings were reverted from private (me only) to public (everyone). I immediately fixed the permissions and deactivated my account. I am not putting up with this.
> From what I've read, the new updates default to share with "everyone" only if you have NOT modified your privacy settings in the past.
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.
If this change stands, the majority of Facebook users affected by it haven't signed up yet, so your first point doesn't have a lot of bearing on whether the move is ethical or not.
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.