As a primer, you can check out this insane infographic of Facebook's privacy settings, compiled by the New York Times--it's ridiculously overwhelming, and many users simply can't be bothered to learn all the ins and outs of such a complex system. But then, you can't just replace such a system with a few simplified options--the advanced users would then be left out, and those who care about such things would be far more upset than the casual users would be pleased.
It looks as though Facebook is planning on a new, simpler checkbox option--Sparapani called them "simplistic" options, though (if I'm going to get all grammar-nerdy on him, which clearly I'm about to) I think and/or hope he meant "simple" or "simplified."
“Now we’ve heard from our users that we have gotten a little bit complex,” Sparapani said in a radio interview Tuesday. “I think we are going to work on that. We are going to be providing options for users who want simplistic bands of privacy that they can choose from and I think we will see that in the next couple of weeks."
It's not a bad solution--the vast majority of Facebook's near-500 million users who don't care about such things would be offered better, if slightly automated, protection. Wired notes that it's unlikely that users would be able to control the "publicly available information" policy, which controversially made some user info findable via search engine.