Though this ‘feature’ was pulled shortly after it was released, you can be sure it will eventually return. Being able to list every Facebook user near you, whether they’re on your friends list, speaks volumes about how lightly the company treats user’s privacy. Like the ‘Girls Near Me’ app which caused a furore a number of months ago, this is nearly identical. Except it’s official.
Combine this with Facebook prioritising it’s @facebook.com email address on your homepage, hiding your other (proper) email addresses, plus a long string of stomping on individual privacies, two things are clear. It wants to keep you and your interactions within it’s walled garden, it wants to BE your internet.