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One clear advantage LinkedIn has is in search engines. if you do a google search for "Brian Harris, San Francisco" #2 is LinkedIn. This is a clear advantage when looking for a job, employers can easily verify who you are.
Also as you mention, LinkedIn has a much older demographic most of which i think would be less willing to move over to facebook... Can you imagine a 60 year old C-Level Exec poking a colleague??
LinkedIn is here to stay, there will always be a need for it. they just have to embrace Facebook and use it to grow their user base.