Is Facebook a phonebook or a directory of identities?

This week I moderated a session (this one was for TRUSTe ) and the focus was on regulation, data protection and law.  Whilst some of the focus was on issues of detail there is still this massive overhang to me that whilst some are rushing down the regulation/ directive/ law route for Identity, PII, data protection and cookies others are just getting on with it.  

Way back in January 2011 Facebook stated that their quest is to "make the world more open and connected" by giving out users personal contact information such as home addresses and phone numbers to third-party developers and websites. This all went very quite and it was suspended after public outcry from users and US Congressmen, but whether you like it or not, the social network may be the natural digital place as a directory and how to find someone – it then gives you the place to be social.

However, we know that the directory business model is broken and it is only a matter of time before it finally becomes non-economic but what will replace it? Facebook,  Rated People, Trusted Tradesmen or some social mechanism for finding people, friends and services?

I can see Facebook becoming a place for socially verified identities, but what the value is and where the business model is a different question.  Yes simple login does have value and maybe Facebook Connect is the hidden Gem but can I see the local plumber wanting everyone to find him and he trying to manage the blend of his professional work life and personal life in one place – probably not.