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PROVIDED THAT THE USER THE INFORMATION BELONGS TO EXPLICITLY ALLOWS THE APPLICATION TO MAKE A COPY OF HIS/HER DATA
The information is the property of the users. Facebook is simply keeping that information with its users' implicit trust that it won't abuse the privilege. Facebook should not release this information to anyone without the users' consent.
Similarly, if users want an application such as Plaxo to have their personal information, it is not Facebook's place to stand in the way and force the user to reenter it.
I think the options presented to the user when s/he adds an application (and later in the application preferences) should give users the opportunity to make clear what they prefer to share with applications and whether they consent to having the applications store that information long-term. The default settings should be chosen to protect the user, but the user should have the final say.
Second aren't all Facebook apps vetted by Facebook?
In regards to your second question, this wasn't a Facebook application. It was a generic script that was automatically logging into Facebook as a user and crawling their friends.
But I am sticking with what I said about facebook applications and users' data. I'm hoping people will back me up on this and get facebook to make this change.
It's the difference between a walled garden and an open web. It would essentially solve the multiple login problem and establish facebook, and other similar platforms, as providers of an online identity that other sites can tie into.