The video's first point about Facebook encouraging acronyms is moot. First of all, words such as "LOL" and "FML" are hardly unique to Facebook, and secondly, he completely fails to address what's wrong with using them. To the older generation it might sound like "turbospaz" language, but from a linguistic point of view these acronyms are probably going to become part of the modern lexicon.
The "You don't have 852 friends, you have about 4, and that's good

. 4 friends that you talk to is better than 848 friends that you don't want to see, but are happy to look at." thing is only true to an extent. People who live their lives on Facebook are missing the point of the website; Facebook is meant to supplement your day-to-day interactions, not replace them. For somebody like me (who, admittedly, has far more Facebook "friends" than actual friends), trying to keep track of who you've met and all their contact details is almost impossible; Facebook makes it easier to connect with these sorts of people, and works to bridge relationships with those with whom you will only meet sparingly.
All the stuff about creepy people judging your photos (masturbating to FB photos? Good grief) just depends on what you feel. I'm not a particularly private person, so I'm content to wear my heart's sleeve all over the internet. If people want to judge me based on the stuff that's on my online profile, go for it - it's a part of me, and I'll just have to accept that others feel a certain way about that aspect of my existence. If you're really concerned, just set things to private; I know plenty of my friends do that.
Basically, the guy who made that video is missing the point of Facebook. Yay.