I've had this discussion with several people before. The result of every discussion is that there are different ways to use the same service. Neither are inherently bad, but some can be worse than others. More on that as I share with you how I use Facebook, and why.
1. Profile
I fill out my profile with relevant information. Facebook's publishing settings are actually not terrible. Now, you can choose each part of your profile to be visible to various levels of friends, to lists, to the public, or to nobody at all. For example, if you're single, but you are building an interest in someone and wish to not display your relationship status, you can make just that part of your profile invisible. Alternatively, if you are in a relationship and want the world to know, you can make it public.
I'm of the opinion that if you add someone to your friends list, you genuinely care about them enough to let them know details about your life. So, if I add someone to my friends list, I'm alright with them knowing everything that's in my profile. Also, people only know as much as you tell them. If you don't fill out your work history, then they won't know where you worked before. Really, you're in control of your information.
Fields like Religion, Political Affiliation, Education and favorite sports, music and movies are all voluntary. I think that sometimes it may be a good idea to leave those blank. After all, when you meet someone new, it gives you something to talk about. This can be a double-edged sword though. More on that below, in the Friends section.
2. Friends
At the time of this writing, I have 78 friends. I've been a member since before Facebook went public in September of 2006. If you recall, Facebook was open to various universities first, before it went public. I've never had more than 100 friends... I don't even think I've had more than 80. I had a MySpace account before Facebook and most of my friends from MySpace moved over, so I added them. However, over time, I stopped talking to some of those friends and we drifted apart. I removed them from Facebook.
I remove people from my Friends list when I don't talk to them, or when they don't talk to me. If we have nothing in common, when we don't talk, then we're not friends. When you have 500 friends but realistically chat with only 10 of them and see 5 or 6 of those 10 in real life several times a month, what does that say about you? Why do you have 500 "friends"? Do you know that's a security risk?
How is it a security risk, you ask. If you fill out your profile with information you only want to share with your friends, and then one of those 500 friends gets hacked (and people do get hacked, all the time), they have access to your information. Then, your pictures appear in local ads in Ching Chang province in China, or on anti-American posters in Pyongyang, NK. Or your data is sold to telemarketers. If you have your cellphone posted in your profile and have your various emails visible to your friends, you are risking all that to telemarketers. But... hiding it from everyone? What's the point of putting it there then? What about your network e-mails? You can't remove those or you lose network affiliation.
Facebook profiles get compromised all the time. Unless you have all your 500 friends separated into lists and each list has its specific permissions set for various areas of your profile, you are at risk of being exposed. Sorry, that's just how it is.
Besides, what's the point in having so many friends? I never understood it. You meet someone at a bar, and immediately share your FB information. Say you're a guy and you met a girl, and now instead of exchanging numbers, you both whip out your smartphones and add each other to Facebook in hopes of getting laid. Is that it? Have we fallen this far?
3. Status Updates
Harsh language warning. Honestly, I know you love music, but fucking stop with the youtube links. Sometimes people will sign on Facebook and post every single youtube song they listen to over the past hour on their profile. Then, my Newsfeed is flooded with their music. The worst is when it's several people doing it at once, because they just happen to be in the mood to spam Facebook with Offspring or Pink Floyd. Seriously, I love both Offspring and Pink Floyd, but please, if I wanted to know what kind of music you listen to, I'd look at your profile. Or even better, get Spotify. Stop fucking spamming my Newsfeed with youtube. The worst part of this is that I don't want to block you, because you're my friend (because I friended you) and I care about what you have to say. If you spam my feed with youtube links though, I will block you entirely.
I care about how you feel, but please expand a little bit more on the circumstances of your mood instead of just posting "today sucks". Try this:
Today sucks, because I woke up with a hang over and drove my car into the ditch outside of the adult store I was heading to to purchase a whip for tonight's festivities. This tells us a lot more about your circumstances and I'm sure some of us can identify with some or all aspects of your situation. That said, I'm guilty of being vague sometimes too. I'm working on it.
4. Photos
Your baby/cat/puppy/hamster is cute. I actually do care to see them, but not every single fucking day. Really. Stop that.
Instead, post pictures from trips (and label them). Post pictures from events. Post pictures of you... and your significant other. Or just pictures of you. Post pictures of interesting things you see around the city. Post videos that you record of cool stuff! Seriously, people don't post enough videos (not youtube, jerks).
Don't re-post shit from other sites on Facebook. If you really have to share something, post a link to it. That's what internet is all about. Perhaps if you post a link to a Reddit article, someone will go there, read it, and then peruse the site and discover a wealth of information they have never even imagined existed.
5. Conclusion
Don't be an attention whore. Share responsibly. Be aware of privacy issues. Don't spam my Newsfeed. Thank you.