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1. The linked test is bad for several obvious reasons: they have a max CPC of $0.10, they have very narrow targeting settings, and they generated less than a thousand impressions. I checked the targeting and it yields a whopping 2,460 users.
2. ROI is a simple acronym: return on investment. You can calculate it as: profit/cost. Let's plug in the values for the linked test. Profit: 439 targeted impressions. Cost: $0 (outside of the minimal labor cost). How does that translate into "mediocre ROI"?
If you do a legitimate test of Facebook advertisements, you will find it is in fact competitive to other services.