I did try to read it carefully and then posted. The passage Jeff refers to ("...for any purpose on or in connection with the Site or the promotion thereof..." I presume)is however in the middle of a sentence. Does the rest of the sentence come under that clause, or may facebook:
"...prepare derivative works of, or incorporate into other works, such User Content, and to grant and authorize sublicenses of the foregoing", no matter in what contex?
Further, record of release is needed in different situations in different countries. In Sweden, having a licence like this will allow you to publish the pictures in any journal, newspaper or such under the freedom of the press act without any release. You will however need a release from the models to use it in advertisement. Any pictures not including identifiable persons does not need any such treatment in Sweden. The copyright as written in Sweden is practically irrevocable, especially for individuals against corporations, but it provides very slim rights. The expertise here is arguing for not submitting pictures without additional signs of copyright and even then they add that "it will have to be tried before we know for certain". Some of these points may be very clear cut being an american and working in america, but an additional level of insecurity is added when you are not. As is the case for a large number of photo.net users (not to mention facebook users).
I also think that a third party having bought the pictures legally, while facebook had the licence to the pictures, may very well be entitled to continued use even if facebook lost the right to sell the pictures at a future time-point.
I agree that some lines are similar to standard licenses but in comparison with the relevant lines in the photo.net license:
"You retain copyright to images and text uploaded to photo.net. By submitting material, however, you grant photo.net and its successors or assigns a perpetual non-exclusive world-wide royalty-free license to publish that material on the World Wide Web as part of the photo.net web site. You grant Us the right to edit, modify, quote, or reformat uploaded images and text, including the right to include advertisements and hyperlinks. You grant other readers the right to quote your material in their own postings on the Site", some important words are different.
Note in particluar the absence of "transferrable", "with the right to sublicense" and "prepare derivative works of" in the license to photo.net and the repeated use of "quote". Whearas photo.net recieves the right to "publish that material on the World Wide Web as part of the photo.net web site", facebook gets to "use, copy, publicly perform, publicly display, reformat, translate, excerpt (in whole or in part) and distribute such User Content for any purpose on or in connection with the Site or the promotion thereof", in addition to the loop-hole for sublicensing.
Further for professional photographers there is the additional problem of having photos being used by a large multinational company that would otherwise have paid handsomely for pictures for example for use in advertising.
Finally I don't think the starting of this discussion is frivolous. The reading of the license has already produced several news paper articles and diverse official statements and interpretations over here. While I do not say that news papers over here are any less prone to error than in other places, the lively discussion is a sign that the license situation is not clear and that it warrants discussion.
Again I am sorry for a rather lengthy post, but there are some points that would benefit from clarification.
Yours,
Michael