This supports that investors invest in the founders and not the idea. This isn't the most compelling application/idea however the founders made an impression and that got them a slot.
Regardless of how big Facebook gets. If users continue to blindly accept the terms of use when they sign up, they will continue to agree to this type of censorship. FB is a private site that you elect to join and you accept their rules by doing so. The public at large should be outraged but nobody cares.
I've got a similar setup using SSH Tunnel Manager to tunnel to a co-located Linux machine running squid proxy. All my applications used the proxy connection via the tunnel (browsers, IM clients, etc.).
Took some initial configuration time to get things setup but now its just one click in the SSH Tunnel Manager widget to get things going anytime I'm working remote.
You don't need to run squid to use an SSH tunnel as a proxy. If you set up a dynamic tunnel (not sure how to do this in SSH Tunnel Manager but it's fairly straightforward in putty) you point your clients at the local side and use it as a SOCKS proxy.