I use Facebook as a kind of simple RSS feed (I never used actual RSS though). I subscribe to different groups (companies, bands, TV Shows etc.) and I end up getting news about certain topics this way. It's also good for sharing photos but that's pretty much it.
It's ugly and clumsy but people still use it because it's what everyone else they know uses.
I also don't think I've ever clicked on an ad on my Facebook page.
The part where you stay in contact with people you know in real life doesn't interest me much unless they have some photos to share. If you're going to use it just for posting text, you might as well get yourself a real blog.