Facebook reverted their changes and said "oops, big misunderstanging, sorry!" According to them, they'd updated it to allow them to do anything they might need to do, and they made it overly broad, allowing to do all sorts of things they didn't want to do and had no intention of ever doing. And they didn't realize people would care and get upset about that. So, they promised to ask for comments and write a new Terms of Service proposal.
Well, it's done, and you can read it here.
Now they're effectively saying "put up or shut up":
They're holding a vote: Go with this proposal, or return to the updated rules they introduced late last year that caused all the ruckus. If you had a Facebook account on February 26, 2009, and still do, then you can vote here. Voting closes at noon tomorrow, Thursday April 23nd.
And there's a catch: The vote is binding only if at least 30% of "active users" vote, where the number of "active users" is defined as the number of users who logged into Facebook in the 30 days preceding February 26th. Last I checked, only about 450,000 people had voted, which I'm pretty sure is well below the quorum.
In other words, to get the improved Terms of Service, we need more voters.